Sam McCauley Chemists Limited, the operating company behind the independent retail pharmacy group, has secured a cash injection from Carlyle Cardinal Ireland (CCI). Terms of the investment, which is expected to be completed before the end of the summer, have not been disclosed.

CCI is a private equity fund established by The Carlyle Group and Cardinal Capital Group. When its investment has been completed in Sam McCauley Chemists, Patrick McCormack, the group’s current managing director, will step down.

Sam McCauley joined his father’s business in 1978 and transformed it from a single family-owned chemist shop in Enniscorthy to the third largest retail pharmacy group in Ireland. It now comprises 30 stores and employs almost 600 employees nationwide. Turnover for Sam McCauley Chemists Limited in 2015 was €75m; the company booked a net profit of €2m and paid €3m in dividends to shareholders.  Net worth in December 2015 was €18m.

Sam McCauley remains on the board of the company and held a 50% shareholding, alongside joint owner Paul Maher, according to 2015 account filings. CCI’s Ian Daly and Jonathan Cosgrave will now join McCauley group’s board of directors. Current MD Patrick McCormack is leaving to pursue other business interests. He joined Sam McCauley’s as a pharmacist in 1991 and was appointed managing director in 2007.

Tony McEntee, former CEO of Allcare Pharmacy Group and finance director of Lifestyle Sports, will join the company as CEO following the completion of the investment.

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Sam McCauley said: “We have maintained that customer focus and high degree of service as the business expanded in size over the years. The investment from CCI allows us to continue this growth as an Irish-owned business and will accelerate future innovations. I look forward to working with Tony and CCI during this exciting next stage in the company’s evolution.”

Jonathan Cosgrave, managing director of The Carlyle Group, commented: “The Irish population aged over 65 years is expected to increase by 35% over the next 10 years and Sam McCauley’s has a demonstrated ability to meet the increasing healthcare needs of our ageing population in the community setting. We and the Sam McCauley management team have the collective ambition and capital to double the size of the company – through a combination of organic and acquisitive growth – over the next three to five years to maintain Sam McCauley’s as the largest Irish-owned pharmacy group,” said Cosgrave

CCI has been an active growth investor in the Irish market in the three years since its launch here. Sam McCauley Chemists Limited is the CCI fund’s eighth investment; other investee companies include Carroll Cuisine, Abtran and The AA Ireland.

Photo: Ian Daly (left) director, Cardinal Capital Group; Sam McCauley and Jonathan Cosgrave. (Pic: Fennell Photography)