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Rix & Kay advise historic builders' merchants creating 120M group

Firm name(s)Rix & Kay Solicitors LLP
https://www.rixandkay.co.uk/
Deal typeBusiness Sale
Industry sectorConstruction
Description

Rix & Kay’s Corporate Team has completed the sale of Fairalls (Builders’ Merchants) to Cairngorm Capital Partners. Fairalls will join Cairngorm Capital Partners’ other brands in the sector, Parkers Building Supplies and Stamco, creating the largest independent builders' merchant group in the South East. The newly-enlarged group has more than 500 employees, combined revenues of £120 million and 24 branches serving Surrey, Sussex and Kent.

Fairalls’ origins date back to 1900. The builders’ merchant offers a mix of heavy and lightside building materials, from its four locations in Surrey and Kent – Gatwick, Sevenoaks and two branches in Godstone. Its Taylors Hill Branch in Godstone is one of the largest heavyside yards in the South East.

In 2018 the business, currently managed by Bob Fairall and his son Richard, achieved revenues of approximately £15m with 85 employees. Bob Fairall will remain with the business on an interim basis before entering retirement. Richard Fairall will also remain with the business, which will continue to trade under the Fairalls brand.

The Rix & Kay team was made up of corporate team partners Bruce Hayter, Alan Zeal, Tim Sadka and Kathryn Paisley, with property advice being provided by Richard Cripps and the commercial property team and employment lawinput from Victoria Regan.

Bruce Hayter commented,

“We are delighted to have worked with Fairalls on this significant deal and to help the owners achieve their ideal exit and succession strategy. Providing strategic corporate advice like this, to family-owned businesses, is firmly within Rix & Kay’s expertise.

“Our experience of working on these deals, coupled with the time we invest to truly understand the financial and emotional drivers of the owners, makes a huge difference. Our service is enhanced by the high quality of the wider deal team who helped to make this transaction happen.”

Cairngorm Capital was advised by PwC (financial and tax), Gowling WLG (legal), CIL (commercial), JLT (insurance) and Vail Williams (property). MDW Capital provided financing advice. Fairalls were advised by Rix & Kay (legal), Plummer Parsons (financial and tax) and EMC (corporate finance).

Adviser(s)Rix & Kay Solicitors LLP
Completion date22nd July 2019
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