Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
Independent Builders Merchant Group (IBMG) has announced it has raised additional capital investment from investment firms Ares Management Corporation and Farallon Capital Europe LLP.
The Group has also said that it will be launching new customer proposition covering Renewables and Sustainability; the business will look to expand its independent brand network through new branches and M&A where strategically appropriate.
Martin Stables, IBMG’s CEO, said: “The IBMG business model is special and unique in the sector. With five specialist divisions we can take any project from the ground to the roof ridge and ensure it’s supplied via an optimised supply chain minimising the miles travelled, ensuring efficient delivery for the specialised trades on site, without the need for multiple suppliers and the complexity and delays that can cause.”
Andrew Steel, Cairngorm Capital managing partner, explained “Despite the economic uncertainty of the last 12 months, IBMG’s investment thesis has been strong and continues to meet all our objectives. IBMG has achieved sustained success since our initial acquisition in 2018, becoming the largest independent building supplies merchant in Southern England in under four years. This partnership will maintain its strategic trajectory. We are delighted to welcome Ares and Farallon as we embark on the next chapter of growth for IBMG.”
James Kim, Ares, partner, said: “We are thrilled to partner with Cairngorm Capital and IBMG to support the company’s next phase of growth. We are impressed by IBMG’s talented management team and performance since inception which speaks to their strong market positioning and high-quality operations. In addition to the funding provided, Ares looks forward to sharing its operational and strategic resources to help support IBMG accelerate value creation for all stakeholders.”
Philipp Strepp, Farallon, managing director, added: “We are excited by the partnership with IBMG, the firm has proven resilient in recent months, has an excellent leadership team, great brands and a focus on what matters to their core customers. We are delighted to support IBMG’s team on what is a clear strategy to deliver a best-in-class customer proposition and continue to consolidate their part of the market.”
IBMG stated it is also focussed on growing its offering for local trade customers who provide services to consumers looking to enhance their homes.
