MKM seeks refinancing

MKM Building Supplies is looking to raise as much as £220m to bring in funds to underpin further expansion, the Financial Times reports.

Private equity groups 3i and LDC, who have 35 per cent and 10 per cent respectively, are seeking to sell their shares in the merchant group, co-founded by CEO David Kilburn in 1995. It is likely that the sale will be to another venture capital or private equity group.

3i announced last April that it would be likely to seek to exit its 18-year relationship with MKM. http://news.sky.com/story/election-pledges-buoy-3i-housebuilder-sale-10363597

Kilburn owns 40 per cent of the group. MKM had revenue of £284.3m in the year to September 30, up from £251.2m a year before. Pre-tax profit was £15.8m, compared with £10.2m.

MKM has 45 branches and 1,100 staff and like-for-like sales have been increasing about 12 per cent year on year since 2011.

MKM opened its 45^th branch in the Scottish town of Galashiels last month.