Cairngorm Capital acquires Chandlers and forms Independent Builders’ Merchant Group11 October 2019
Cairngorm Capital has continued its acquisition strategy in the builders merchant sector by acquiring southeast-based Chandlers Building Supplies Ltd.
Cairngorm will merge Chandlers with its existing builders’ merchants brands, Parker Building Supplies (Parkers), Stamco and Fairalls, consolidating its position in the South of England as the leading independent building materials supplier.
In another new development, Cairngorm said the newly enlarged company would be part of a new holding company known as the Independent Builders’ Merchant Group.
The new enlarged company has 37 branches operating from the Midlands to the South East, with combined revenues of £180m and over 750 employees.
Established in 1993, Chandlers has 14 branches serving Sussex, Kent, Surrey, London, Essex and the West Midlands, including six specialist roofing supplies centres. Headquartered in Ringmer, East Sussex, it generates revenues of £60m and employs over 230 people.
Parkers, together with its sister brands Stamco and Fairalls, is the largest independent builders’ merchant group in the South East, with 23 branches serving Surrey, Sussex and Kent. It has over 500 employees and combined revenues of £120m.
Cairngorm Capital said there was no overlap in branch locations and cited a highly complementary product range.
“This merger is strategically important, offering both companies the opportunity for geographic expansion and to extend their product ranges,” it said.
“It was prompted by the existing shareholders’ desire to take the business to the next level.” Andrew Cope, Chandlers’ MD will join the board of the new combined company as a board director.
The senior management teams of both companies will merge under the leadership of Chris Maityard, Parkers’ Chief Executive, to scale the business and generate further growth, ensuring that the company fulfils its potential.