Fintrax ‘on block’ 3 years after sale

Galway-based specialist financial services company Fintrax is reportedly set to be sold just three years after being bought for up to €170m.

Fintrax — which was founded in Ballinahown, Co Galway — provides, via subsidiary firms, Vat refund services for tourists buying goods overseas and currency conversion technology to allow for credit card purchases to be made in the buyer’s home currency when abroad. The company, established in the early 1980s by Gerry Barry, changed hands in 2012 when acquired by British private equity company, Exponent.

Mr Barry commercially launched the Vat-back service in Shannon Airport in 1985. Since then, the company has grown to be the second largest in its field and employs around 400 people across offices in 23 countries outside of Ireland.

Now, Sky News has reported that Exponent has appointed investment banker, Jefferies to oversee a sale of Fintrax and is planning to begin talks with potential buyers “within weeks”. It added that Exponent anticipates selling the Irish-founded firm for more than it paid to acquire it three years ago.

It is understood that, back then, Exponent landed Fintrax amid heavy competition; beating offers from interested parties in Asia, the US and mainland Europe. It was reported at the time of the takeover in August 2012 that the UK private equity house, which has previously invested in such diverse businesses as handbag manufactuer Radley, The Times Literary Supplement, and vegetarian foods producer Quorn, won against 10 fully funded offers.

Exponent has never broken out earnings and revenue figures for Fintrax, but the Galway firm had sales of around €85m and earnings in the region of €14m when it was bought by the British firm in late 2012.

In its report, Sky said that Exponent had declined to comment on the prospect of Fintrax being sold, but claimed unnamed sources suggested the private equity house was confident in making a profit on its 2012 transaction.

The Fintrax news closely follows the UK government accusing airport retailers in Britain of effectively misleading customers by failing to pass on refunds and upping their profits in the process.

The UK press reported, last week, that a number of well-known high-street retailers with airport concessions — the likes of Boots, Dixons, and WH Smith all being named — have been asking customers for their boarding cards and implying they would benefit from Vat savings, but ultimately have failed to pass such savings on to buyers.