Cairngorm Capital Partners had made a further investment in Stevenswood Trade Centres to enable Stevenswood’s acquisition of Truemans Holdings.
This transaction advances Stevenswood’s ambition to develop a national network of trade counters and completes strategic gaps in its presence in England.
The new combined group will continue to be headquartered in Livingston and will have over 30 branches across the UK, generating revenues of over GBP40 million and employing over 165 people.
A wholly owned family business established in 1997, Truemans is a rapidly growing trade counter group, operating four trade counters in Burnley, Doncaster, Sheffield and Crewe, with another scheduled to open in Reading in spring 2017. The company employs 41 people and is forecast to achieve revenue of GBP10 million in 2017.
Truemans’ managing director, Joe Trueman, will join the Stevenswood senior management team as commercial director to drive Stevenswood’s continued growth strategy.
Following earlier investments in Polyframe, WB Group, Stevenswood and Customade, this acquisition is Cairngorm Capital’s fifth proprietary, off-market transaction in the window and door manufacturing sector since July 2016. This latest investment is consistent with Cairngorm Capital’s strategy to invest in well-performing UK companies to support ambitious management teams in driving transformation, introducing new technology and manufacturing processes and extending geographic reach.
The completion of this acquisition also marks the decision by Ron Hepburn, Stevenswood’s founder, to retire.
John Declerck, a Stevenswood non-executive director, will join the business full time as group chief executive. He brings over 15 years global executive experience in procurement, merchandising, brand strategy and digital marketing for building materials and home improvement firms such as Kingfisher and Home Depot.
To provide additional support, Stevenswood has strengthened its board with the appointment of Jim Faulds as non-executive chairman. Faulds brings considerable experience of supporting private equity backed investments in a non-executive capacity and as the founder of The Faulds Group, which he sold in 2001.
The transaction was led by Alex Bayliss, investment director at Cairngorm Capital, who says: “As investors we are actively involved in the strategy and operational focus of our portfolio companies. Consequently, we are delighted to help Stevenswood progress its plans to become the UK’s leading distributor of windows and doors to the trade, and support this proprietary, off-market transaction between Stevenswood and Truemans. We would also like to thank Ron Hepburn for his commitment and dedication in preparing Stevenswood for future success during the last few months and wish him the very best for the future.”
Declerck says: “The coming together of Truemans and Stevenswood underlines our mutual strategic commitment to become the leading trade counter distributor of windows and doors in the UK. Our collective focus is to build a customer-led business with improved stores, an enhanced product range and a consistently excellent service offering.”
Joe Trueman, managing director of Truemans, adds: “This is the perfect partnership for two businesses which share a commitment to the highest standards of customer service. There are great opportunities across the sector and the alignment of our goals, values and vision, offers significant strategic benefits for both organisations. I look forward to joining the Stevenswood team to accelerate our combined growth strategy, while providing the widest product range and highest levels of customer service in the industry.”
Stevenswood and Cairngorm Capital were advised on the transaction by PwC (financial and tax) and Bond Dickinson (legal). Truemans was advised by Napthens (legal) and Cassons (financial). Clydesdale and Yorkshire Bank Group provided working capital facilities to support the transaction.
