Cairngorm Capital Case Studies
Grant & Stone Group case study
In November 2019 Cairngorm Capital acquired Grant & Stone, a leading independent builders’ merchant based in the Thames Valley. Five further proprietary investments in 2020 and 2021 have created the largest independent builders’ merchant in the South of England, led by a longstanding management team led by CEO Nick House and Group MD Peter Cudd. The Grant & Stone Group now operates from 74 branches and has revenues approaching £250m.
Cairngorm Capital is partnering with Grant & Stone’s high calibre management team, providing strategic and operational support to accelerate organic growth and to complete additional bolt-on acquisitions. Cairngorm Capital is providing specialist operational and sector expertise in procurement, technology and marketing to help accelerate growth and transformation.
Acquisition of Grant & Stone – November 2019
Group: 29 branches; £100m revenues; 360 employees
Acquisition
Grant & Stone (29 branches, 360 employees):
- Established in 1987 and based in High Wycombe, Grant & Stone is a leading builders’, electrical and plumbing merchant with a strong focus on customer service
- FY19 revenues of c.£100m
- Cairngorm Capital’s initial investment in Grant & Stone was made in Nov 2019 and is the first investment from its 3rd fund, Cairngorm Capital Partners III LP
Location
Strategy
- Sector consolidation to build the leading independent builders’ merchant in the South of England
- Continued focus on high stock availability and service levels
- Retain local branch based decision making, with value-added branch support centre
- Drive up revenue and improve operating margin performance from bottom to top quartile, through improved merchandising, thoughtful supply chain management and geographic expansion
Acquisition of 3Counties Timber & Building Supplies – September 2020
Group: 31 branches; £110m revenues; 420 employees
Acquisition
3Counties Timber & Building Supplies (2 branches, 60 employees):
- Founded in 2007 3Counties operates from 2 branches in the Thames Valley
- Similar heavyside product mix and customer type to Grant & Stone builders’ merchant branches
- Strong customer service focus
- FY20 revenue of c.£9m delivering high margins
Location
Strategy
- Continued expansion of branch network in the Thames Valley
- Adds two highly complementary branches to existing Grant & Stone network, in terms of geography, product type and customer type
Acquisition of CRS – January 2021
Group: 44 branches; £140m revenues; 580 employees
Acquisition
CRS (13 branches, 160 employees):
- Founded in 2005 CRS operates from 12 branches in Somerset
- Similar heavyside product mix and customer type to Grant & Stone builders’ merchant branches
- Strong customer service focus
- FY20 revenue of c.£40m with a track record of organic growth from new branch openings
Location
Strategy
- Expansion of group footprint towards the South West of England
- Adds 12 highly complementary branches to the Grant & Stone Group network
- Provides platform for continued organic growth, and defines strategy for further consolidation in the South West of England
Acquisition of Total Plumbing Supplies – February 2021
Group: 49 branches; £150m revenues; 640 employees
Acquisition
Total Plumbing Supplies (5 branches, 60 employees):
- Founded in 2001 Total Plumbing Supplies operates from 5 branches in Somerset
- Specialist wholesale plumbing and heating supplier, including a wide range of bathrooms and kitchens
- Strong customer service focus
- FY20 revenue of c.£11m with consistently good historic performance
Location
Strategy
- Acquisition of heating and plumbing specialist in Somerset to complement the CRS branch footprint
- Adds 5 highly complementary branches alongside the 12 CRS general builders’ merchant branches
- Opportunity for organic growth and further cross selling in the South West of England
Acquisition of Buildit – February 2021
Group: 52 branches; £165m revenues; 700 employees
Acquisition
Buildit (3 branches, 60 employees):
- Founded in 2009 Buildit operates from 3 branches in Gloucester and Wiltshire
- Similar heavyside product mix and customer type to Grant & Stone builders’ merchant branches
- Strong customer service focus
- FY20 revenue of c.£13m generating best in class profit margins
Location
Strategy
- Geographic infill between the Grant & Stone and CRS branch networks
- Adds three highly complementary branches to the Grant & Stone Group, with strong management capability for further organic growth
Acquisition of RGB – February 2021
Group: 74 branches; £235m revenues; 1,000+ employees
Acquisition
RGB (22 branches, 300+ employees):
- Founded in 1850 RGB operates from 22 branches in Devon, Cornwall and West Somerset
- Similar heavyside product mix and customer type to Grant & Stone builders’ merchant branches, including three specialist plumbing and heating branches
- Strong customer service focus and outstanding local brand strength
- FY20 revenue of c.£65m with a long track record of growth
Location
Strategy
- Addition of one of the leading builders merchants in the South West of England
- Adds 22 highly complementary branches to the Grant & Stone Group, forming the largest independent builders’ merchant in the South of England
- Further strengthens calibre of Grant & Stone Group management with addition of Kevin Fenlon to the group board
