Investment type
- Secondary buyout
MKM Building Supplies (MKM) is the UK’s largest independent builders’ merchant, with 47 branches across England and Scotland. Designed to be a ‘one-stop shop’ for building, plumbing and timber supplies, MKM stocks a wide range of products from the industry’s leading manufacturers.
National rollout
In May 2006, LDC took a minority stake in MKM. The investment, alongside the continued support of existing backers 3i, meant that the management team could accelerate its roll-out strategy.
LDC supported Founder David Kilburn and his team’s ambitious growth plans, and during the partnership, revenues and profits more than trebled.
Private equity can bring a new dimension to a business in two ways. One is through funding, which helps to provide the cash to grow the business, and secondly in areas of expertise where a business like ours could be lacking.”
Long-term partnership
In February 2017, 3i and LDC sold their stakes in MKM Building Supplies to Bain Capital.
During LDC’s 11-year partnership, MKM developed from being regional to a national player, expanding to 47 branches across the country.
Through superior service and category expansion, the business generated revenues in excess of £248m and employed more than 1,100 people at the time of exit in 2016.
LDC are invested in multi-sector businesses where they can bring significant experience to the table when we need it. It’s very much a partnership.”
Awards
Builders’ Merchants Awards for Excellence
2018
Exit of the Year
Insider Yorkshire Dealmakers