London and Edinburgh, 19 March 2021
Cairngorm Capital Partners LLP (Cairngorm Capital) is pleased to announce that an affiliate of its third fund, Cairngorm Capital LP III, has made a majority investment in Bromborough Paint & Building Supplies Limited (Bromborough), supporting a management buy-out by its executive team.
Established in 1948, Bromborough is a family-owned, specialist independent paint distributor, headquartered in the Wirral. Bromborough has 17 branches across the North West of England, from Shrewsbury in the West Midlands to Carlisle near the Scottish border, serving trade and retail customers. Bromborough also has an e-commerce platform, Trade 1st, supplying paint and decorating supplies nationwide. Bromborough is the third largest independent paint distributor in the UK, with over 100 employees and in 2020, achieved revenues of £17 million.
Cairngorm Capital’s investment enables the retirement of Neville Wellings, Bromborough’s owner, after more than 50 years in the business. Cairngorm Capital will partner with Bromborough’s directors, Giuseppe Alfonso, John Ferrington and Dan Peacock. They will be supported by a strengthened board led by Jon Gatfield, who joins as Chairman to aid the management team in delivering their strategic vision. Jon has considerable experience in manufacturing and logistics, particularly in the building products sector, including senior roles at National Timber Group and Sentry Doors.
Cairngorm Capital partners with strong, ambitious management teams providing capital, strategic advice and operational best practice to drive transformational growth in their companies. Its investment will enable Bromborough to capitalise on its significant market opportunities, allowing it to extend its geographic distribution with new branch openings and strategic acquisitions. The first new branch will open in Warrington in just a few weeks’ time. Additionally, in line with its buy and build investment philosophy, Cairngorm Capital will work with Bromborough’s executive team, sharing strategic and operational expertise to accelerate the growth and development of Bromborough’s ecommerce offering, www.trade1st.co.uk
Cairngorm Capital’s investment was led by John Naylor-Leyland, Managing Director, who explained, “Bromborough demonstrates all that we like in a partner – the firm has strong performance and heritage, differentiated product range, outstanding reputation and an excellent management team. We look forward to partnering with Giuseppe, John and Dan over the next several years and investing further in the business to support continued geographic expansion in adjacent areas, through both new branch openings and complementary acquisitions.”
Neville Wellings, Bromborough’s owner and managing director said, “Bromborough has been a family enterprise since my father, Harry Wellings, founded it over 70 years ago. Given our heritage, my priority was to find a partner who would be a good custodian of Bromborough in the future, and one that Giuseppe, John and Dan could collaborate with to create opportunities for our exceptional employees. Cairngorm Capital have a really strong track record in accomplishing this so I am confident that Bromborough will go from strength to strength.”
Bromborough’s directors, Giuseppe Alfonso, John Ferrington and Dan Peacock added, “We are really excited to be partnering with the team at Cairngorm Capital. They have invaluable operational and investment experience in the building materials sector, which we look forward to drawing on. Together as partners, we will have the resources and the expertise to take Bromborough to the next stage in its development.”
This is Cairngorm Capital’s 32nd proprietary investment since 2016 and is an example of the firm’s expertise in supporting the transfer of businesses from founders, families, and long-term private owners to new custodians. All of Cairngorm Capital’s portfolio companies have performed well throughout the pandemic and have returned to growth. The firm continues to seek further bolt-ons and new platforms across the building materials, fire protection, healthcare, and business services sectors.
Cairngorm Capital was advised on this transaction by BDO (financial and tax), Womble Bond Dickinson (legal), Drystone (customer insights), and Atlas (new territory mapping). Arbuthnot Commercial ABL have provided asset backed and cashflow debt facilities to support the growth ambitions. Bromborough was advised by Hill Dickinson (legal).
For further information, please contact Katherine Ritchie on 020 8347 6183 or 07941 040021
Notes to editors
Cairngorm Capital Partners LLP is a specialist private investment firm providing equity capital and management expertise to leading UK companies. It invests in strongly-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.
Cairngorm Capital’s current portfolio includes majority owned stakes in:
Building Supplies Online
Grant & Stone Group
Independent Builders Merchants Group
MRO+ Solutions Group
National Timber Group
Bromborough Paints – Established in 1948, Bromborough is a family owned, specialist independent paint distributor, headquartered in the Wirral. Bromborough has 17 branches across the North West of England, from Shrewsbury in the West Midlands to Carlisle on the Scottish border, serving trade and retail customers. Bromborough also has an e-commerce platform, Trade 1st, supplying paint and decorating supplies nationwide. Bromborough is the third largest independent paint distributor in the UK, with over 100 employees and, in 2020, achieved revenues of £17 million.
www.bromboroughpaints.co.uk • www.trade1st.co.uk
View the pdf version: Cairngorm Capital/Bromborough Paints Release 19.03.2021 pdf