Cairngorm Capital Case Studies

Stevenswood Group case study

Stevenswood is the nation’s leading multi-profile distributor of windows, doors and conservatories. Led by a management team with deep industry expertise and based in Livingston, Scotland, Stevenswood generates revenues of over £45m from 37 trade counters across the UK, with c.200 dedicated employees. The group was created initially through the spin-out of seven window and door trade counters into a standalone company following Cairngorm Capital’s investment in the Polyframe manufacturing business in July 2016.  Five further proprietary investments over the following 12 months have established Stevenswood as the UK’s fastest growing window and door distribution group, supplying independent window installers and general builders with a diverse multi-profile product range.

Acquisition of Polyframe Trade Centres – July 2016

Group: 7 trade counters; £9m revenues; 34 employees

Acquisition

Polyframe Trade Centres (7 branches, 34 employees):

  • Seven trade counters spread across the country from Glasgow to Gosport
  • FY16 revenues of £9m
  • Previously run as distribution outlets to enable higher manufactured volumes at Polyframe, offering predominantly Polyframe manufactured products
  • Varied sizes, systems, pricing and service offering
  • Limited central infrastructure at time of investment

Location

Strategy

  • Identified window and door trade counter market as a growing distribution channel
  • Cairngorm Capital extensive experience in building product distribution enabled us to identify PTCs as platform from which we could build the UK’s leading national, multi-profile trade counter distribution business
  • Introduction of management and infrastructure to extend profitable regional business to national presence
  • John Declerck, Cairngorm Capital Operating Partners, joins board as non-exec

Acquisition of 2 trade counters in Hull & 2 trade counters in Sussex – September & October 2016

Group: 11 trade counters; £12m revenues; 57 employees

Acquisition

Trade Counters in Hull, Hailsham and Crawley (4 branches, 23 employees):

  • Consolidation of four trade counters that had previously been in joint ventures with Polyframe
  • FY16 revenues of £3m
  • Combination of PTC and independently branded trade counters
  • Complementary product offering

Location

Strategy

  • Continue to consolidate trade counter market through acquisition of strong independent trade counters with complementary product mix and service ethos

Acquisition of Stevenswood – November 2016

Group: 26 trade counters; c.£31m revenues; 133 employees

Acquisition

Stevenswood Trade Counter business (15 branches, 76 employees):

  • 15 window and door trade counters, 9 of which had been opened in previous 18 months
  • Market leader in trade distribution in Scotland
  • FY16 revenues of £18m
  • Previously run as an integrated distribution and manufacturing business
  • Headquartered in Livingston near Edinburgh

Location

Strategy

  • Acquisition of Stevenswood delivered platform investment to accelerate growth of trade counter group, creating business with national coverage
  • Merger with existing trade counter business; all existing branches rebranded Stevenswood
  • Sale of Stevenswood’s window fabrication facility in Livingston to Polyframe group
  • Supported by strong senior management team based in Livingston

Acquisition of Truemans – March 2017

Group: 30 trade counters; c.£42m revenues; 165 employees

Acquisition

Truemans (4 branches, 41 employees):

  • 4 trade counters based in the North West of England
  • FY17 revenues of £9m
  • High growth business, driven by family founder Joe Trueman
  • Strong brand presence, loyal employee and customer base

Location

Strategy

  • Fourth proprietary acquisition identified and completed within 9 months of initial investment
  • Extend geographic coverage
  • Strengthen management team with appointment of Joe Trueman as Stevenswood group commercial director
  • Cairngorm Capital investment enabled retirement of Stevenswood founder Ron Hepburn. John Declerck, Cairngorm Capital Operating Partner, moves to full time CEO role
  • Accelerate capability to drive organic branch roll-out

Acquisition of Sameday Trade Frames – June 2017

Group: 37 trade counters; c.£45-50m revenues; 205 employees

Acquisition

Sameday Trade Frames (7 branches, 25 employees):

  • 7 trade counters based in the South West of England
  • FY17 revenues of £6m, growing 15%+ annually
  • Highly complementary acquisition offering similar product range with strong profile overlap
  • Managed by Mike Woodend, who has joins Stevenswood team as Regional Director

Location

Strategy

  • Fifth proprietary acquisition identified and completed within 12 months of initial investment
  • Further Extend geographic coverage
  • Strengthen management team with appointment of Mike Woodend as Stevenswood Regional Director
  • Cairngorm Capital investment enabled retirement of Sameday Trade Frames founder Justin Matravers who opened first branch in 2006
  • Accelerate capability to drive organic branch roll-out in South West

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