Estate agent Sherry FitzGerald is sold for approximately €50m
Founded 40 years ago, Sherry FitzGerald currently employs 550 people across the country.
Ireland's largest estate agent SherryFitzGerald has been sold to serial entrepreneur Tommy Kelly.
The group has been acquired by CastleGate Investments, a growth focussed family firm, led by Roy Barrett on behalf of Mr Kelly.
Following transaction approval from the Central Bank, CastleGate has acquired 100 per cent of the share capital of Sherry FitzGerald. No financial details of the transaction have been disclosed. However, it is understood to be around €50m.
Founder of the company Mark FitzGerald, son of former Taoiseach Garet FitzGerald, will be the largest beneficiary of the deal with a 55% shareholding in the company. Other major shareholders include Michael Grehan, Clair Cullinan and Sheila O'Flynn who is Managing Director of SherryFitzGerald's Cork office.
CastleGate said the acquisition is part of a broader plan to grow Sherry FitzGerald through investment in its people, brand and technology.
Mark FitzGerald the Group’s former majority shareholder has been appointed Strategic Adviser to the Board, which will be chaired Mr Barrett. Steven McKenna will remain as Group CEO alongside his senior management team.
Mr Kelly was the founder and CEO of eShopWorld which helped global companies to localise their websites. He sold his stake in the company last year to a joint French and Swiss venture in a deal that is understood to have been worth €500m to him.
The estate agent group was founded 40 years ago by Mark FitzGerald. Today the company employs 550 people across 103 offices and five distinct divisions; residential, new homes, commercial, lettings and financial services.
“In the 40 years since the business was founded, we have retained the mindset of a challenger brand in terms of what we do and how can we do it better," Mark FitzGerald said. "Our excellent management team embraces that approach as does Tommy Kelly, Roy Barrett and CastleGate. Irish housing is a complex subject, and we were keen to find investors who had a curiosity to improve the experience for consumers, rather than just follow economic activity. When we sat down with Tommy and Roy we found like minds.”
SherryFitzGerald's CEO Steven McKenna said: “I am delighted that we are starting a new chapter with such a dynamic and forward-thinking investor. CastleGate Investments share our ambition for the future and supports our commitment to the highest standards of service in the industry."
"As a former adviser to the company, Roy understands the sector, the business and its professional ethos and ambition for its clients."
Mr Barrett a former CEO Of Goodbody manages the CastleGate Investments fund on behalf of Tommy Kelly. The fund holds a global investment portfolio invested across public and private markets, often with a technology bias.
It recently led a €21m funding round for Dublin-based IT security company CWSI.
“We are excited to invest in Sherry FitzGerald, one of the foremost brands in the country and one that has earned the respect and trust of consumers nationwide over many decades," he said.
"Building on its success to date we see great scope for incremental growth and added value services for Sherry FitzGerald customers alongside excellent career progression opportunities for Group and franchisee colleagues."
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