Clearwater Ireland advises on the Management buy-out of SONAS Bathrooms, backed by Muzinich & Co.

Transaction

SONAS Bathrooms MBO supported by Muzinich & Co.

Sell-side

Undisclosed

Role

Adviser to SONAS Bathrooms on its MBO supported by Muzinich & Co.

Sector

Consumer

Region

Ireland

Clearwater has provided corporate finance and debt advisory advice on the management buy-out of SONAS Bathrooms; Ireland’s leading supplier of bathroom products, as it embarks on the next phase of its growth strategy.

The MBO was supported by a combination of debt and equity from Muzinich & Co. (Muzinich). In addition, Muzinich provided a significant line of growth capital that can be used for both organic and acquisition led growth. Specific terms of the agreement are not being disclosed.

SONAS is the largest single supplier of bathroom products in Ireland, which has developed a model of asset light manufacturing of bathroom products distributed under its own brand. The company, which employs almost 90 full time staff has maintained its impressive growth trajectory with current year trading on target to reach €45m sales.

Muzinich is a privately owned, institutionally focused investment firm specialising in public and private corporate credit. The firm was founded in New York in 1988 and also has offices in Dublin, London, Frankfurt, Madrid, Manchester, Milan, Paris, Singapore, Sydney, Hong Kong, and Zurich. Muzinich offers a broad range of corporate credit funds across both developed and emerging markets.

This is the second transaction Clearwater has worked on involving SONAS Bathrooms, having previously advised the company in December 2017 on its investment from MML Growth Capital.

SONAS is a market leader providing high quality products at fair prices. We have been impressed by the high calibre of the senior management team of Richard, Darren and Ger, who together deliver operational and logistical excellence, resulting in a top rate customer experience. We look forward to working with the management team and the wider business as they enter an exciting new phase of growth. At Muzinich, we have a very positive view on the macro environment in which SONAS operates, and expect to see strong organic growth, coupled with the potential for expansion and acquisitions in the future.
Howard Mahon, Director, Pan-European Private Debt, Muzinich & Co.

Working with MML since December 2017 has been such a positive experience as their investment approach fully supported our brand development and growth strategy. This deal reflects management’s ambition and the belief we have in the SONAS brand, and we’re delighted to receive the backing and support of Muzinich & Co, led by Howard Mahon. Since joining the business back in 2003 I have witnessed so much growth and development within SONAS which can be attributed to the efforts of my colleagues both past and present who have made the company what it is today. Thanks to John and the Clearwater team for their valued advice and guidance along the journey.
Richard Sloan, Managing Director, SONAS Bathrooms

We are delighted to have worked closely with MML, Dermot Usher and the management team of SONAS led by Richard Sloan in securing Muzinich as a suitable financing partner to effect an MBO at an exciting phase of development for the SONAS brand. It is a testament to the strength of the SONAS management team to have doubled the business in size during the 3 year period of MML’s ownership. Howard and his team at Muzinich have been both proactive and innovative to work with and should prove to be an agile growth capital partner for SONAS as the business seeks to expand its footprint internationally from here.
John Sheridan, Partner, Clearwater