An affiliate of Cairngorm Capital Partners LLP (Cairngorm Capital)’s third fund, Cairngorm Capital LP III, has made a majority investment in Bromborough Paint & Building Supplies Limited (Bromborough), supporting a management buy-out by its executive team.
Established in 1948, Bromborough is a family-owned, specialist independent paint distributor, headquartered in the Wirral. Bromborough has 17 branches across the North West of England, from Shrewsbury in the West Midlands to Carlisle near the Scottish border, serving trade and retail customers. Bromborough also has an e-commerce platform, Trade 1st, supplying paint and decorating supplies nationwide.
Bromborough is the third largest independent paint distributor in the UK, with over 100 employees and in 2020, achieved revenues of GBP17 million. Cairngorm Capital’s investment enables the retirement of Neville Wellings, Bromborough’s owner, after more than 50 years in the business.
Cairngorm Capital will partner with Bromborough’s directors, Giuseppe Alfonso, John Ferrington and Dan Peacock. They will be supported by a strengthened board led by Jon Gatfield, who joins as Chairman to aid the management team in delivering their strategic vision. Gatfield has considerable experience in manufacturing and logistics, particularly in the building products sector, including senior roles at National Timber Group and Sentry Doors.
Cairngorm Capital partners with strong, ambitious management teams providing capital, strategic advice and operational best practice to drive transformational growth in their companies. Its investment will enable Bromborough to capitalise on its significant market opportunities, allowing it to extend its geographic distribution with new branch openings and strategic acquisitions. The first new branch will open in Warrington in just a few weeks’ time.
Additionally, in line with its buy and build investment philosophy, Cairngorm Capital will work with Bromborough’s executive team, sharing strategic and operational expertise to accelerate the growth and development of Bromborough’s ecommerce offering, www.trade1st.co.uk.
Cairngorm Capital’s investment was led by John Naylor-Leyland, Managing Director, who explaines: “Bromborough demonstrates all that we like in a partner – the firm has strong performance and heritage, differentiated product range, outstanding reputation and an excellent management team. We look forward to partnering with Giuseppe, John and Dan over the next several years and investing further in the business to support continued geographic expansion in adjacent areas, through both new branch openings and complementary acquisitions.”
Neville Wellings, Bromborough’s owner and managing director, says: “Bromborough has been a family enterprise since my father, Harry Wellings, founded it over 70 years ago. Given our heritage, my priority was to find a partner who would be a good custodian of Bromborough in the future, and one that Giuseppe, John and Dan could collaborate with to create opportunities for our exceptional employees. Cairngorm Capital have a really strong track record in accomplishing this so I am confident that Bromborough will go from strength to strength.”
Bromborough’s directors, Giuseppe Alfonso, John Ferrington and Dan Peacock add: “We are really excited to be partnering with the team at Cairngorm Capital. They have invaluable operational and investment experience in the building materials sector, which we look forward to drawing on. Together as partners, we will have the resources and the expertise to take Bromborough to the next stage in its development.”
