Boojum's backers plan to double the burrito chain's size by the end of 2016

THE FINANCIERS BEHIND popular Mexican burrito bar Boojum expect to double the chain’s outlets by the end of the year.

Dublin-based Renatus Capital Partners partnered up with Belfast brothers David and Andrew Maxwell to buy the chain, which had five outlets north and south of the border at the time of the July deal.

Renatus co-founder Mark Flood also told Fora that the private equity firm has a pot of €16 million and is on the look out for more investment opportunities.

“You can only grow retail so fast,” he said of Boojum’s growth so far. ”We hope to grow it to 10 and we’ll see where we can take it from there. We’d like to have 10 by the end of the year.”

The chain currently has three locations in Dublin, after recently opening a new one on Abbey Street, two in Belfast and one in Galway.

New shops

Flood said that the two capitals are the most likely areas for more expansion, adding that they are in a “strong” position, although he said the firm is also looking at different towns such as Waterford and Athlone.

“It all depends on the unit. Retail is about location; the product is good but you have to get the right location.”

Rentaus co-founder Mark Flood

Boojum is trading well and made a profit of just over £451,000 (€570,185) in the 12 months to the end of 26 April 2015. The chain was the first investment made by Renatus, which is now hunting for further deals.

The private equity group was set up by Flood, the former managing director of the Racing Post, and his partner Brendan Traynor, who served as a corporate finance director at BDO.

It is focused on investing in medium-sized businesses with earnings of more than €500,000 and “growth potential”. Renatus’s typical investment is between €1 million and €3 million in companies worth anywhere from €3 million to €10 million, although Flood said that the equity group would consider buying a business if it was the right fit.

Fresh deals

Flood said that the company is in talks with a number of potential partners and is hoping to strike several deals before the end of 2016.

“We have a pot of money, a €16 million fund, and we try to not just deliver the money but deliver value as well,” he said.

“When it comes to Boojum we’re hands on in stuff like finding properties, putting in systems, we’re hands on across the board.”

While the firm has ruled itself out of a few sectors, virtually any other type of business is fair game.

“We’re not (into) hotels, public property or renewable energy,” Flood said.

“We’re looking at all sectors, Ireland is too small to specialise in a sector. We’re looking at ten businesses at the moment. (We might invest in) one or two. We have to be happy with them and they have to be happy with us.”