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Rix & Kay completes sale of £67 million turnover independent builders' merchant

Firm name(s)Rix & Kay Solicitors LLP
www.rixandkay.co.uk
Deal typeAcquisition
Industry sectorConstruction
Description

Parker Building Supplier, an independent builders’ merchant based in the South East of England has been acquired by Edinburgh-based Cairngorm Capital Partners.

Founded in 1984, Parker Building Supplies serves trade and retail customers with its core offering of heavyside building materials plus an array of ancillary offerings including, plumbing, joinery and architectural ironmongery. Headquartered in Polegate, East Sussex, the company generated revenues of £67m in 2017 from 15 locations across Sussex and Kent.

Rix & Kay Solicitors acted for Tom Parker, founder and managing director of Parker Building Supplies.

Tom Parker said, “For 34 years, our priority has been to provide our customers with the best range of building products and outstanding customer service. Parkers has grown substantially in recent years and has the potential to achieve much more. This is the natural point for me to pass the company to new, trusted custodians who can deliver on its future potential. The team at Cairngorm Capital has demonstrated considerable flexibility and integrity in completing this investment. Having a detailed understanding of their plans and knowing the team as I do, I am confident that Parkers is in good hands and will go from strength to strength.”

Alan Zeal and Kathryn Paisley, corporate partners at Rix & Kay, led the firm’s multi-disciplinary team that also included dedicated real estate and employment law experts.

Alan Zeal commented,

“We’ve worked in partnership with Parker’s for many years and have supported them through strong and continued periods of growth. The challenge laid down on this deal to ensure it completed in good time was exceptional. Rix & Kay’s team worked tirelessly to get this over the line and I think the nature of this deal reflects our capabilities and calm approach to managing large transactions.”

This is Cairngorm Capital’s 13th proprietary transaction since July 2016. Cairngorm Capital will seek to expand Parkers through a combination of organic growth and acquisitions. The aim is to transform the scale of the business, to become a market leader in the builders’ merchant sector in southern England.

Four new senior managers are joining the firm, led by Cairngorm Capital operating partner John Declerck. John will become Executive Chairman to support the established management team and to share his considerable operational expertise in the building materials sector. John has over 20 years’ global executive experience at leading building products distribution companies including Kingfisher and Home Depot.

The incumbent team will be further supported by Chris Maityard and Iain Bell, joining as Managing Director and Chief Operating Officer respectively. Chris and Iain bring extensive building materials experience from companies such as Plumbase, Ridgeons and Wolseley. Stewart Harries joins as Finance Director.

Cairngorm Capital’s investment was let by Alex Bayliss and Andrew Steel. Alex commented,

“Parkers is an excellent example of the sort of business in which we like to invest. It has a compelling product offering, delivered by a skilled and committed workforce of just under 300 people providing outstanding customer service. We are delighted to contribute the investment funding and industry expertise to support Parkers in its next stage of growth.”

“Parkers’ partnership with Cairngorm Capital is the start of a new phase in the firm’s development. Our goal is to increase our network of builders’ merchants over the next five years, to become a leading distributor of building products in the UK. We aim to achieve this through a mix of acquisitions, new site development and organic growth. We are interested in further opportunities that allow us to fulfil our plans for innovative and growth, to the benefit of our customers, employees and suppliers.”

Adviser(s)Rix & Kay
Completion date16th March 2018
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