Cairngorm Capital Case Studies

Stevenswood Group case study

Stevenswood is the nation’s leading multi-profile distributor of windows, doors and conservatories. Revenues exceed £40m from 30 trade counters across the UK with c.165 dedicated employees led by a management team with deep industry expertise. 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.  Four further proprietary investments over the following 9 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 (“PTCs”) – 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

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