London and Edinburgh, 18 July 2019
Cairngorm Capital Partners (Cairngorm Capital) is pleased to announce that it has acquired Fairalls (Builders’ Merchants) Limited (Fairalls). It joins Cairngorm Capital’s other building merchant brands, Parkers Building Supplies and Stamco, creating the largest independent builders’ merchant group in the South East. The newly enlarged group has 24 branches serving Surrey, Sussex and Kent, over 500 employees and combined revenues of £120 million.
A family firm dating its origins back to 1900, Fairalls 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 will remain with the business on an interim basis before entering retirement. Richard will also remain with the business which will continue to trade under the Fairalls brand.
This is Cairngorm Capital’s 20th proprietary, off-market transaction since July 2016 and its third in the builders’ merchants sector, following its purchase of Stamco last month and Parker Building Supplies in March 2018. It is representative of the firm’s buy and build strategy which combines investment capital plus strategic guidance with operational and industry expertise to expand its businesses.
The transaction was led by Alex Bayliss, Managing Director at Cairngorm Capital, who said, “As investors we are actively engaged in the strategy and operational development of our portfolio companies. We have been working hard to find opportunities to scale our building merchant business. Like Parkers and Stamco, Fairalls is an excellent company with a strong brand in the independent builders’ merchants market and an outstanding reputation with its customers. Geographically this partnership is highly complementary, extending our presence across the South East of England to make our group, the largest independent builders’ merchant in the region. We are delighted to welcome Fairalls to the group.”
Bob Fairall, Managing Director of Fairalls said, “Having made the decision to retire, it seemed natural timing to find a partner who would ensure Fairalls fulfils its potential and I believe our partnership with Cairngorm Capital and the other group companies will achieve this. We have much in common with Parkers and Stamco in terms of heritage, outstanding product quality and a commitment to the highest standards of customer service, which makes this a very good fit. I am looking forward to facilitating a successful handover of the business to our new partners, who will be working closely with my son, Richard, to pursue new opportunities for innovation and growth, which will benefit our customers and employees, while retaining the company’s core values.”
Cairngorm Capital was advised on this transaction 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).
For further information, please contact Katherine Ritchie on 020 8347 6183 or 07941 040021
Notes to editors
Fairalls (Builders’ Merchants) Limited – a family firm dating its origins back to 1900, Fairalls 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. It employs 85 employees and in 2018, achieved revenues of approximately £15 million.
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. The firm’s goal is to build and realise value through growth and performance improvements. Cairngorm Capital’s unique mix of sectoral expertise and investment skill enables it to be actively involved in the strategy and operational focus of portfolio companies, partnering with management teams to grow revenue, enhance margins, improve cash flow or consolidate industry leadership positions.
View the pdf version: Cairngorm Capital Press Release 18.07.2019 pdf