Cairngorm Capital Case Studies

Customade Group case study

In July 2016 Cairngorm Capital acquired leading PVCu window manufacturer Polyframe.  Three further proprietary investments over the following 9 months have created the UK’s largest window manufacturing group with a diverse product offering (PVCu, aluminium and composite entry doors) and a national footprint of 10 factories, led by a management team with deep industry expertise.  On completion of the fourth acquisition in February 2017, the group was rebranded “Customade”. With over £100m in revenues, Customade is now the nation’s premier multi-site, multi-product trade (B2B) fabricator of windows, doors and conservatories – meeting all trade customers’ needs.

Acquisition of Polyframe Group – July 2016

Group: 4 sites; c.£44m revenues; 470 employees

Acquisition

Polyframe manufacturing (4 sites, 470 employees):

  • UK’s largest independently-owned specialist fabricator of trade windows for repair, maintenance and improvement (i.e. replacement not new build) market, selling to trade installation companies and smaller tradesmen
  • FY16 revenues of c.£44m
  • Manufactures c.7,000 frames per week from 4 factories
  • Key product is PVC windows (industry leader)
  • Leading reputation for profile range, product quality and 5 day delivery

Location

Strategy

  • Cairngorm Capital’s deep window and door industry experience both as investors and operators used to support continued growth and creation of multi-site market leader
  • Introduction of management and infrastructure to extend profitable regional business to national presence
  • Jon Gatfield, Cairngorm Capital Operating Partner, joins as Interim Managing Director

Acquisition of WB Group – October 2016

Group: 5 sites; c.£54m revenues; 570 employees

Acquisition

Polyframe Doors (formerly WB Group; 1 site, 100 employees):

  • Leading manufacturer of composite doors (49% of revenue); other products are PVC door slabs and Duraflex PVC window frames
  • FY16 Revenues in excess of £10m
  • Composite Doors revenues growing strongly – and Virtuoso range will soon be offered to Customade / Polyframe customer bases

Location

Strategy

  • Extend product offering to customers with Virtuoso composite entry door range – positioning the group advantageously in higher growth aesthetic products market
  • Further capex investment to increase manufacturing capability, product development and expanded range

Acquisition of Manufacturing Assets of Stevenswood – November 2016

Group: 6 sites; c.£64m revenues; 700 employees

Acquisition

Stevenswood manufacturing (1 site, 100 employees):

  • Well-invested 55,000 sq ft PVC window frame fabrication plant
  • Currently producing c.1,500 frames per week
  • FY16 Manufacturing Revenues: c.£10m
  • Substantial capacity to increase production volumes, and expand manufacturing footprint

Location

Strategy

  • Consolidate industry leading position with comprehensive PVC range and national UK reach

Acquisition and Merger with Customade Group – February 2017

Group: 10 sites; c.£100m+ revenues; 900+ employees

Acquisition

Customade (4 sites, 320 employees):

  • Leading manufacturer of aluminium doors and windows; also manufactures PVCu frames
  • Strong and experienced senior management team in place, with integration and synergy delivery experience – MD became Group CEO
  • FY16 Revenues in excess of £35m

Location

Strategy

  • Fourth proprietary acquisition identified and completed within 9 months
  • Extend product offering to meet all customers’ fenestration needs (PVC, aluminium, doors)
  • National coverage with 10 manufacturing sites
  • Assembled deeply-experienced industry management team

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