Fisher backing local bid for former Quinn companies

The men have been holding discussions with the Aventas management team and their advisers with a view to purchasing the business once owned by Sean Quinn ‘outright’.

They are to make a formal offer to buy the Derrylin and Ballyconnell based company within weeks and their proposals – seen by The Impartial Reporter - have received the backing of eight former Quinn executives, including former Chief Executive Liam McCaffrey.

Mr McCaffrey, who worked for the Quinn Group for 21 years, has played a key role in putting the plan together.

Speaking exclusively to The Impartial Reporter, the Enniskillen man said the proposal would “save” the former Quinn business.

“We have been looking at this for two or three months and decided to form a company to progress the plan. We have been in touch with the Aventas management team and their advisers, and also financiers who are interested in backing the proposal.” “Already the former Quinn businesses are being sold off,” said Mr McCaffrey, “The roof tiles disposal has been announced, the transport division is being sold off and to us that is fairly critical that we would try to keep that intact. We are concerned that now there is a move and a momentum towards splitting it up and we want to put our best foot forward to see that it is avoided.” On the wish list includes Quinn’s former cement factories and all of the concrete products, the glass, plastics and packaging factories, and the radiator factory in Newport, South Wales.

Three businessmen are sponsoring the initiative and are also directors of a new company set up to manage the takeover bid. Former managing director of Fisher Engineering, Ernie Fisher, is one of the key players. A formidable name in business, Mr Fisher has been involved in community life in the Ballinamallard area for many years and is currently the director of Armagh City Hotel Limited. The two other businessmen are Leitrim Fine Gael Councillor John McCartin of Newtowngore Engineering and John (Bosco) O’Hagan, managing director of the Specialist Joinery Group in Maghera, who have devoted their lives to business. Mr McCaffrey has described the trio as “highly-respected, successful businessmen.” He also revealed that Sean Quinn who lost control of his empire in April 2011 after it was passed into the hands of the Irish Bank Resolution Corporation has backed the proposal, but is not involved in the bid.

“No, Sean is not involved; he is aware of this and he and the family are supportive of this initiative,” he said.

The company’s previous executive team, including Denis Doogan (former Radiator Division Chief Executive), John Lee (former Group Logistics and Transport Director), Kevin Lunney (former Group Development Director), Tony Lunney (former Group Operations Director) and Paddy Mohan (former Group Sales and Marketing Director) are also supporting the endeavour.

And if the deal goes ahead, some of the management team who left the company around the same time that Mr Quinn was removed would be reinstated, says Mr McCaffrey.

“All of those people are entirely supportive of it and will do all they can to bring it across the line. Ultimately the composition of the management team will be a matter for the financiers and the Board of the new company. I would imagine if they were to go with our ethos then a number of those people would be reinstated, yes,” he said.

Mr McCaffrey confirmed that discussions with Aventas have been “reasonably constructive”.

“They certainly haven’t said they are not interested in the proposal; their advisers have been in correspondence with us on it. That is a process to be worked through. We have put forward our proposal and how we want to take the business forward. What we now want to do is to make sure we have public support for that from our own point-of-view and the point-of-view of the financiers,” he said, adding that the trio will be in position to make a formal offer in eight weeks.

Mr McCaffrey now hopes the proposal will generate debate and discussion.

“I hope people would be supportive of it because I think in five years, what shape will the former Quinn Group be in? Will it become nothing more than contract manufacturing facilities at best? Or will it be that we could go for the big prize, if you like, to have a company with its headquarters in the area; a company that would provide all the value added activities and local motivation and local sense of responsibility what would come from a locally-based management team. I think it is too good of an opportunity for us to ignore this and I think the time now is perfectly right for it,” he said.

In the proposal, the businessmen say the objective of their bid is “to preserve and nourish the extremely positive contribution that the presence of the businesses of the former Quinn Group and its management structure have brought to the communities of Fermanagh and Cavan.” Its mission statement states: “The retention of this economic base is critical to the well-being of the area from an economic, social and political perspective. Quinn Business Retention Company Limited (the “Company”) is focused solely on ensuring that this existing industrial base remains intact and headquartered in the Fermanagh/Cavan area and is thereby positioned to profitably maintain and increase employment within these businesses while creating the necessary environment for strong future career growth for local people.” “The Company is determined to ensure that key technical and managerial skills within the workforce are retained and nourished locally for the prosperity of the whole local community. It believes that the economies of scale arising from the combined structure of the former Quinn Group are significant and necessary to be competitive, given the disadvantages that the area otherwise has to contend with. With this objective the Company now states its intention to acquire any businesses of the former Quinn Group that are presented for sale.”