Staff Maurice, Sean, Alistair, Alba, Oltian, Judi, Inigo, Ahmed and Faizan
Forte Pespa acquired in deal estimated at €20m
INNOVATIVE Rathcoole company Forte Pespa Balcony Systems was acquired this week by Erisbeg, one of the largest private equity firms in the country, in a deal estimated to value about €20 million.
Forte Pespa are a leading full-service provider of prefabricated modular balcony solutions in Ireland.
Established in 2016 by chief executive Oltian Dervishi and his father Agim, the investment will help the company to scale up its operations, including vital works to repair defects at Celtic Tiger built apartment blocks.
This includes The Crescent Building in Park West, which houses 232 apartments and close to 1,000 residents, among some of the estimated 100,000 homeowners nationwide affected by fire safety defects – a legacy of building regulation oversights and government recklessness.
Speaking to The Echo, Oltian Dervishi was delighted with the investment, which will help the company, which currently has 53 staff, continue its growth.
However, they can only go as fast as allowed to by the State for projects in the Pathfinder – the government-led initiative for apartment and duplex defects remediations.
“State bodies can be very slow to enact anything, its hard to get boots on the ground. We could do twice the amount of work we are doing now. Companies are just waiting for a start date,” said Othian, who says this is a common refrain from builders in the construction industry.
“The whole façade is being ripped off (The Crescent). We are supplying a couple of thousand square metres of decking and soffits and four to five thousand square metres in cladding, applying our knowledge to the existing stock. People have been living in very dangerous circumstances, similar to Grenfell in London.”
Following this deal, Forte Pepsa plans to double its manufacture capacity to 6,000 balconies a year with a €6 million investment in a new plant adjoining its existing factory.
“That €6 million will all be invested in Rathcoole, which provides opportunities for local trades. We are also looking at acquisitions and to create 40 new jobs,” confirmed Othian.
Forte Pepsa say they have revolutionised the conventional approach by to balcony construction streamlining the entire process into one comprehensive solution.
Since taking the business offsite three years ago, Othian says they have “grown exceptionally fast”, citing companies of a similar size who have three times the staff numbers.
“We are a beacon in terms of our manufacturing, by doing more with less. We have experienced 80 per cent growth in the last two years and expect to grow 30 percent year-on-year in the next two three years. Every client that comes to us stays with us, we are sticky. They love that we are an Irish manufacturer.”
Looking ahead, Othian believes there is at least 20/25 years work for the remediation projects.
“The Crescent is the first out of 240 projects. It incorporates every aspect of fire safety defects, including fire alarms systems.”
Following the acquisition, Oltian, who owned 85 per cent before the transaction, will continue as CEO, while Agim will step back from the business.
