Lead Forensics

Case study

MKM Building Supplies: Long-term minority investment

During an eleven year partnership revenues and profits more than trebled thanks to a national rollout strategy.

MKM is the UK’s largest independent builders’ merchant, with 47 branches across England and Scotland.

Deal type
Exit date

March 2017

LDC Region

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.

orange quote mark
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.”
David Kilburn, Co-Founder
MKM Building Supplies

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.

orange quote mark
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.”
David Kilburn, Co-Founder
MKM Building Supplies

Awards

Builders’ Merchants Awards for Excellence

2018

Exit of the Year

Insider Yorkshire Dealmakers