Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
Builders merchant group MKM Building Supplies has announced that its long-term finance partners 3i Group plc and LDC have sold their stakes in the merchant business to Bain Capital Private Equity.
The management of MKM, the UK’s largest independent builders merchant, will retain a significant shareholding in the business.
3i’s 2006 investment, which was partially syndicated to LDC, has supported founder and Executive Chairman David Kilburn with the firm’s ambitious growth plans. Since 2006, revenues and profits have more than trebled. During this time, the business has also developed from a regional to a national player, expanding to 47 branches across the country. The business has consistently grown like-for-like sales well above listed peers through superior service and category expansion, generating revenues in excess of £284 million in 2016 and employing over 1,100 people.
Kilburn said: “MKM has enjoyed exceptional growth over the past twenty-one years and I would like to thank 3i and LDC for their long-term backing and support. We are looking forward to working with Bain Capital for the next stage in MKM’s development. The UK builders’ merchant market is anticipated to grow to £13 billion by 2020 and we expect to expand our UK branch network significantly.”
