Parker Building Supplies has acquired the five-branch, independent merchant business of Stamco with the support of its strategic partner, Cairngorm Capital.
This has been described as a ‘key step’ in Parkers’ strategy to expand its business through a combination of acquisitions, new site development and organic growth with the firm’s ultimate aim to ‘become the market-leading independent builders’ merchant in the South East of England’.
Established in 1957, Stamco – or the Sussex Turnery and Moulding Company Limited, to give its full name – is a privately-owned, independent builders’ merchant and wholesale timber processing and distribution business. Headquartered in Hastings, it has five branches in Eastbourne, Hastings, Hove, Worthing and Rye. Stamco employs 180 people and in 2018, achieved £32 million in revenue.
The acquisition was prompted by the retirement of owners, Mike Cullis and Roger Brightiff, who will remain in the business short-term, to ensure an effective handover and a smooth transition. Managing Director, John Cornelius, will join the Parkers senior management team to contribute to the combined company’s growth strategy.
With a ‘highly complementary’ product range, this acquisition is strategically important, offering Parkers the opportunity for geographic expansion and to extend its product range. The new enlarged business will continue to be headquarted in Polegate, Sussex, has 20 branches across Sussex and Kent, with combined revenues of more than £100 million and over 450 employees.
Roger Brightiff, owner of Stamco, said: “Once Mike and I had taken the decision to retire, our priority was to find a partner with shared goals and values who would help Stamco to fulfil its potential. Both companies have common heritage, outstanding product quality and commitment to the highest standards of customer service, which makes this partnership a very good fit. We are confident that Stamco is in very capable hands and that it will continue to thrive and prosper.”
Chris Maityard (pictured, inset), Parkers’ Managing Director, added: “Our goal is to become the leader in the independent builders’ merchant sector in the South East. To do this we have been working to build a customer-focused business, with great products, outstanding customer service and a strong, expanding branch network. Stamco has very similar values and ambitions to us and a skilled and committed workforce, so this partnership offers the potential for exciting opportunities going forward.”
Parkers and Cairngorm Capital were advised on this transaction by PwC (financial and tax), Gowling WLG (legal), CIL (commercial), JLT (Insurance) and Vail Williams (property). Collins M&A Consultants provided corporate finance advice and MDW Capital provided financing advice. The Sellers were advised by Edwin Coe LLP with respect to legal matters, and LMDB Limited on financial and tax matters.
Cairngorm Capital Partners LLP is a specialist private investment firm providing equity capital and management expertise to leading UK companies. It invests in well-performing, private mid-market growth companies in manufacturing, distribution and services industries, and has made a number of investments into the broader merchant sector in recent years.
Cairngorm Capital’s current portfolio now includes majority owned stakes in:
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