High Wycombe, 1 March 2021: Grant & Stone Group is pleased to announce that it has acquired Rawle Gammon & Baker Holdings Limited, trading as RGB Building Supplies (RGB).
This acquisition creates the largest independent builders’ merchant group in southern England and confirms Grant and Stone’s position as the leading independent supplier in the region. The enlarged group will have 74 branches stretching from West London to Cornwall, with over 1,000 employees and combined revenues approaching £250m.
Founded in 1850, with a long and prestigious history, RGB is one of the leading independent builders merchants in the South West serving customers across Devon, Cornwall and Somerset. Headquartered in Barnstaple, its 22 branches offer trade and retail customers an array of landscaping, plumbing and heating, heavyside and lightside, decorating and general building materials, as well as dedicated kitchen, bathroom and bedroom showrooms in many locations. RGB also operates a timber sawmill and engineered wood product business under the RTD brand. RGB employs over 300 people and in 2020, achieved revenues of £70 million.
RGB’s Chief Executive, Kevin Fenlon, will continue to run the business, reporting to Nick House, Grant & Stone’s Group CEO, and will join the Grant & Stone Group board.
Grant & Stone’s stated strategy has been to develop its builders’ merchant business through a combination of acquisitions, new site development and organic growth. With no overlap of locations, RGB’s highly complementary branch network and product range provide geographic expansion, product extension and provides a strong platform for further growth. Culturally, both companies are highly aligned, sharing a common vision, independent ethos and commitment to providing the highest standards of customer service.
Despite the challenges instigated by Covid-19, Grant & Stone has remained resilient with a clear focus of what it wants to achieve for the future. With the support of its strategic investment partner, Cairngorm Capital Partners, this acquisition advances the Group’s ambition for further growth and future partnerships.
Nick House, Grant & Stone’s Group Chief Executive said, “We are delighted to welcome RGB to the Group. Our shared values, vision and commitment to customers make this an obvious partnership and RGB, a welcome addition to our Group. Grant & Stone is at a really exciting point in its development and we have ambitious plans to fulfil but we are fortunate to be able to benefit from strong investor support, exceptional products, first-rate employees and a well-deserved reputation for superior service. We are excited about the next phase of our development.”
Kevin Fenlon, chief executive of RGB said, “This partnership is exciting and will deliver great things. I am looking forward to joining the Board and working together with the Grant & Stone Directors to advance the long-term strategy and future direction of the Group. We are completely aligned in our ambitions for the company and how we achieve them, as well as having a shared approach to product excellence and outstanding customer service.”
Grant & Stone was advised on this transaction by Grant Thornton (financial and tax) and Gowling (legal). RGB was advised by PKF Francis Clark (corporate finance) and Ashfords (legal).
Grant & Stone Group: Established in 1987, Grant & Stone is an independent provider of quality products and services for the building, plumbing and electrical trades. Via its three specialist building, plumbing and electrical divisions, Grant & Stone has 44 branches stretching from London to the South West. Headquartered in High Wycombe, the Grant & Stone Group employs over 700 people and in 2020, achieved revenues of £140m.
RGB Building Supplies: Founded in 1850, with a long and prestigious history, RGB is one of the leading independent builders merchants in the South West serving customers across Devon, Cornwall and Somerset. Headquartered in Barnstable, its 22 branches offer trade and retail customers an array of landscaping, plumbing and heating, heavyside and lightside, decorating and general building materials, as well as dedicated kitchen, bathroom and bedroom showrooms in many locations. RGB also operates a timber sawmill and engineered wood product business under the RTD brand. RGB employs over 300 people and in 2020, achieved revenues of £70 million.
Cairngorm Capital Partners LLP is a specialist private investment firm providing equity capital and management expertise to leading UK companies. It invests in strongly-performing, private mid-market growth companies in manufacturing, distribution and services industries. The firm’s goal is to build and realise value through growth and performance improvements. Cairngorm Capital’s unique mix of sectoral expertise and investment skill enables it to be actively involved in the strategy and operational focus of portfolio companies, partnering with management teams to grow revenue, enhance margins, improve cash flow or consolidate industry leadership positions.
Cairngorm Capital’s current portfolio includes majority owned stakes in:
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