How ICG’s push to close €1.2bn buyout in August’s holiday lull backfired
Irish Continental Group (ICG) CEO Eamonn Rothwell attempted a €1.2 billion management buyout of the company, backed by BlackRock’s Global Infrastructure Partners. The move surprised investors who had expected a sale to a third party.
Why it matters
The deal represents a significant shift in corporate ownership for a major Irish transport operator and highlights the role of private equity in infrastructure.
Long regarded an obvious takeover target in Dublin financial circles, few people following Irish Continental Group (ICG) would have expected its chief executive, Eamonn Rothwell – who was involved in a takeover battle for the ferry operator 19 years ago that ended in stalemate – to be the one to make a move last month.
Having turned 71 in June, the conventional wisdom was that Rothwell, who has led the group since 1992, was holding out for a company sale to a private equity or infrastructure fund to cash in his stake.
That stake had grown by almost 50 per cent over the past decade, thanks to stock awards and options as well as ICG spending more than €200 million buying back and cancelling shares.
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