Kenny-Whelan sold for €7.5m

CORK recruitment company Kenny-Whelan Associates has been sold to the Newcourt Group in a deal worth up to €7.5 million.

The owners of Kenny- Whelan, Bridget Lyons and Tom Whelan, will get an upfront payment of almost €2.5m, with €5m being paid if the company meets certain financial targets over the next two years.

The firm employs four people and has been in business since 1989. It specialises in recruitment of contract staff for the pharmaceutical and engineering sectors.

Kenny-Whelan Associates will become part of Newcourt’s Sigmar subsidiary.

Mr Whelan will continue as managing director and will also join the executive management committee of Sigmar Group.

In the year to end June 2005 Kenny-Whelan had turnover of €10.6m and pre-tax profit of €321,000. The company had debts of €670,000 at the year end and assets of just €12,000.

Newcourt said the takeover will be paid for out of its existing resources.

The company said the price of buying Kenny-Whelan reflects its view that profit levels at the Cork firm will be maintained and it hopes to achieve some cost savings.

“This acquisition also allows us deepen our presence in the Irish market, both sectorally and geographically and should place Newcourt in a strong position to capitalise further on the expected growth in the Irish economy over the coming years,” the company said.

Shares in Newcourt closed up 2 cents on the Irish Stock Exchange at €1.30, valuing the company at just under €90m. The share price is up over 20% in the past month.