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Merchant buying groups CBA and Cemco to merge

Two of the largest builders merchant buying groups, made of up some of the most significant independent merchants in the UK are to merge.
A new group will be established and trading from January 2014. The group will consist of two divisions: timber and builders merchants, and light-side merchants.

The new group, which has yet to be named, will comprise eight current members of the Combined Buying Association (CBA) and all 30 members of Cemco. It will have a combined turnover of over £1bn, firmly positioning it as the leading independent timber and builders merchant buying group in the UK.

John Parker, chairman of Cemco, said: “Through this new group we will be able to provide suppliers with the assurance of volume and commitment to long-term successful relationships that will enable them to plan manufacturing and build their businesses effectively.”

Stuart Mason-Elliott, chairman of CBA, said: “The new buying group will allow members, all of whom are independent, to be truly competitive on price and volume in the national market-place. Other like-minded merchants will be able to apply for membership from January 2014.”

Business will continue as usual between now and January 2014 and all members of CBA and Cemco will remain committed to existing purchasing agreements with suppliers until that time.

Cemco was established in the early 1990’s and registered as a limited company in 2004. It has 30 members drawn from both the Heavyside/Timber and Lightside of the industry and is currently run by an executive Board with a Chairman elected from within the Membership. Turnover is £525m.

CBA was established in the late 1950s and has 14 member companies and combined sales of £550m. Operations are controlled by an Executive Committee with an elected Chairman and it is organised into three Commodity Committees: CBA Building; CBA Plumbing; CBA Timber. Other Committees include Marketing, IT and Transport

About Fiona Russell-Horne

Fiona Russell-Horne
Group Managing Editor across the BMJ portfolio.

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