2017-027

Carlyle Cardinal Ireland Invests in Sam McCauley Chemists Limited

Co Wexford, Ireland - Carlyle Cardinal Ireland (CCI), the private equity fund established by The Carlyle Group (NASDAQ: CG) and Cardinal Capital Group, has agreed an investment in Sam McCauley Chemists Limited, the independent retail pharmacy group. The investment, terms of which are not being disclosed, is expected to complete before the end of the summer.

Having joined his father’s business in 1978, Sam McCauley has transformed it from a single family-owned chemist shop in Enniscorthy, County Wexford, to the third largest retail pharmacy group in Ireland.  With 30 stores and almost 600 employees nationwide, the company had a turnover of €75 million in 2015. Through a relentless focus on customer service and patient well-being, Mr. McCauley spearheaded the evolution of the company from a traditional pharmacy model to a customer-led Health, Wellness and Beauty brand offering a unique combination of prestige products and services. Mr McCauley will continue as a significant shareholder of the company and remain on the board of directors alongside Ian Daly and Jonathan Cosgrave from CCI.

Upon completion of the investment, Patrick McCormack will step down as Managing Director of the company following more than 25 years’ service, to pursue other business interests. Mr McCormack joined Sam McCauley’s as a pharmacist in 1991 and was appointed Managing Director in 2007. His tenure as Managing Director has seen the company expand store numbers nationwide and launch a successful online health and beauty offering. Tony McEntee, one of Ireland’s most experienced retailing executives, and the former CEO of Allcare Pharmacy Group and Finance Director of Lifestyle Sports, will join the company as CEO following the completion of the investment.

Sam McCauley, said: “The health and well-being of our customers is at the heart of everything we do at Sam McCauley’s. We have maintained that customer focus and high degree of service as the business expanded in size over the years through a continuous focus on introducing new products and services. The investment from CCI allows us to continue this growth as an Irish-owned business and will accelerate future innovations for the benefit of our customers and for the development of our loyal employees. I thank Patrick for his commitment, dedication and long service to the business, and for the significant growth that the company achieved under his leadership. I look forward to working with Tony and CCI during this exciting next stage in the company’s evolution”.

Jonathan Cosgrave, Managing Director, The Carlyle Group said: “CCI is focused on investment opportunities in businesses supported by strong growth drivers. We believe in the long-term potential of retail pharmacy as a cornerstone of frontline healthcare service delivery despite the unprecedented changes to the industry in recent years. 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 aging 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.”

Ian Daly, Director, Cardinal Capital Group, said: “We are delighted that our first Irish retail sector investment is in an outstanding business servicing both patient and consumer health and wellness needs. The Sam McCauley brand is synonymous with high levels of trusted customer service and replicating this bond between its customers and employees across an expanded retail network is a key part of our investment. An increasing focus on healthier lifestyles underpins growth in the Health, Wellness & Beauty market for the foreseeable future and we believe that Sam McCauley’s superior in-store service levels and product range combined with its online, mobile and social media touch-points position the company very favourably to meet this demand.”

CCI has been an active growth investor in the Irish market over the last three years. Sam McCauley Chemists Limited is the fund’s eighth investment and the fund continues to explore other investment opportunities. Current fund investments include The AA Ireland, Payzone, Carroll Cuisine, Lily O’Brien’s, General Secure Logistics Services (GSLS), Learning Pool and Abtran. Upon completion of the Sam McCauley investment, the CCI portfolio companies will employ more than 4,000 people across the island of Ireland.

The investment is subject to approval from the Competition and Consumer Protection Commission (CCPC).

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Press Contacts:

The Carlyle Group
Laurie Mannix, MKC Communications
Tel. +353 1 703 8620 Mob: 086 814 3710 laurie@mkc.ie

Cardinal Capital Group
Tom McEnaney, McEnaney Media
Tel: +353 87 2222 666 tom@tommcenaney.com

About Sam McCauley Group

Sam McCauley Chemists was founded in 1953 by the late G.B. McCauley who acquired the Brooke Kelly Pharmacy at 21 Rafter Street, Enniscorthy, Co. Wexford which had operated as a pharmacy since the early 1900's. Over the next 40 years McCauley Chemists grew into a thriving enterprise. Sam McCauley and his wife Leslie, both Pharmacists, joined the family business in 1978 maintaining the well-established 'family Chemist' culture, long nurtured by Sam's parents and staff.

Sam McCauley Chemists Group occupies a unique niche in the Irish retail pharmacy market. The company’s 'One Stop Health & Beauty Shop' concept embraces a wide range of products and services, including Digital Photo Centres, Prestige Cosmetics and Perfumery, Beauty Salons, and expanded Healthcare Services, all this in addition to the core traditional services provided by experienced friendly pharmacists and staff.

Today Sam McCauley Chemists operate 30 stores across Ireland including Wexford, Dublin, Cork, Carlow, Kilkenny, Waterford, Cavan, Meath, Tipperary and Kerry. The company employs almost 600 staff, including c.40 people at its Support Office in Wexford. The award-winning company is one of the best recognized retail pharmacy brands in Ireland building on a tradition of excellent customer service. In 2016 it was voted the 4th best customer experience in Ireland according to a survey conducted by Consumer Experience Insights, making it the highest ranking pharmacy chain for customer experience in Ireland. Sam McCauley Chemists is ranked amongst the top 500 companies in Ireland and is one of a small group of retail pharmacies which holds the title of 'Deloitte Best Managed Companies'.

Web: www.sammccauley.com
Twitter: @sammccauleychemists
Facebook: www.facebook.com/sammccauleychemists
Youtube:  Sam McCauley Chemists
Instagram: sammccauleys

About Carlyle Cardinal Ireland

Carlyle Cardinal Ireland is a joint venture between The Carlyle Group (NASDAQ: CG) and Cardinal Capital Group. The €292 million private equity fund is focused on growth capital and buyout investment opportunities across the island of Ireland.

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $162 billion of assets under management across 287 investment vehicles as of March 31, 2017. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,550 people in 31 offices across six continents.

Web: www.carlyle.com
Videos: www.youtube.com/onecarlyle
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/about-carlyle/market- commentary

About Cardinal Capital Group

Cardinal Capital Group is Ireland’s leading provider of alternative capital, directing private-equity capital, mezzanine finance and alternative lending to a broad range of sectors in the Irish market. Cardinal invests its own capital alongside institutional funders to support entrepreneurs and corporate management teams as well as real-estate investors and developers.

Web: www.cardinalcapitalgroup.com

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