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.

Sector
  • Construction & property
  • Retail & consumer

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

Deal type
  • Secondary buyout
Exit type
  • Private equity sale
Exit date

03/03/2017

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.

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.

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