Chandlers Building Supplies Ltd and Parker Building Supplies Ltd have announced that they have merged after Chandlers is bought up by equity firm.
The new enlarged company has 37 branches operating from the Midlands to the South East, with combined revenues of £180 million and over 750 employees.
The move follows the acquisition of Chandlers by private equity investment firm Cairngorm Capital, which had acquired Parkers in March 2018, as well as Stamco in June and Fairalls in July. Stamco and Fairalls will also join the new company.
The transaction was led by Alex Bayliss, Managing Director at Cairngorm Capital who explained, “We are working to build the leading independent builders’ merchant in the South East of England. Chandlers is an excellent company with a strong brand and an outstanding reputation with its customers. The merger with Parker Building Supplies is highly complementary, extending our presence and product range. We are delighted to welcome Chandlers to the group.”
Established in 1993, Chandlers is a privately-owned, independent builders’ merchant offering a mix of heavy and lightside building materials to the construction industry. It has 14 branches serving Sussex, Kent, Surrey, London, Essex and the West Midlands, including six specialist roofing supplies centres. Headquartered in Ringmer, East Sussex, it generates revenues of £60 million and employs over 230 people.
Parkers, together with its sister brands Stamco and Fairalls, is the largest independent builders’ merchant group in the South East. In addition to its heavyside offering, the group also supplies kitchens, plumbing, heating, bathrooms, joinery and architectural ironmongery to provide a complete solution to its retail and trade customers. Headquartered in Polegate, East Sussex, the group has 23 branches serving Surrey, Sussex and Kent, over 500 employees and combined revenues of £120 million.
With no overlap in branch locations and a highly complementary product range, both companies see this merger as strategically important and offering opportunities for geographic expansion and the extension of their product ranges. It was prompted by the existing shareholders’ desire to take the business to the next level.
The senior management teams of both companies will merge under the leadership of Chris Maityard, Parkers’ Chief Executive, to scale the business and generate further growth, ensuring that the company fulfils its potential. Andrew Cope, Chandlers’ Managing Director, will join the board of the new combined company as a Board Director.
Chris Maityard, Parkers’ Chief Executive, said, “This merger consolidates our leadership as an independent in the South of England. Our company is at a really exciting point in its development and is ready to capitalise on the numerous growth opportunities available to it. We have ambitious plans to fulfil but are able to benefit from strong investor support, exceptional products, first-rate employees and a well-deserved reputation for superior service. I look forward to the next phase of its development.”
Andrew Cope, Chandlers’ Managing Director, added, “This merger is exciting and will deliver great things. I am looking forward to joining the Board of the wider business and working together with the Parkers’ Directors to develop the long-term strategy and future direction of the new company. We are completely aligned in our ambitions for the company and how we achieve them, as well as having a shared approach to product excellence and outstanding customer service.”
Fiona Perrin, Who will be chairing the Board, welcomed Cope's appointment, adding, “We are delighted that we will benefit from Andrew’s insight and contributions to the Board, as the business undergoes the next phase of its growth.”
(Updated on 15/10 to include section on Cairngorm Capital)