Online building products retailer secures £8.65m for growth from Key
Key has acquired a majority stake in rapidly growing online retailer of building materials, Plymouth-based Construction Materials Online Ltd (CMO) which operates retail sites supplying DIY builders and small building contractors.
The Key team brought a wealth of retail and e-commerce experience alongside their understanding of working with high growth businesses. They remain a supportive investment partner as our business continues to grow.
Key has backed the MBO of the £25m revenue firm that employs 40 staff and has grown sales through its RoofingSuperstore.co.uk, DrainageSuperstore.co.uk and InsulationSuperstore.co.uk websites by 55% in the last 12 months.
The investment, led by Mike Fell, Philip Duquenoy and James Excell, is the second from Key’s new fund and marks its 16th investment since the private equity firm launched in 2007.
Clydesdale Bank Corporate and Structured Finance team in the South-West and Midlands, led by Ian Howey and Ian Mansell, provided senior debt and working capital facilities to support the Key investment. A team at GCA Altium comprising managing director Sam Fuller, director Katherine Hobbs and associate Declan O’Connor advised the company and managing shareholders.
CMO has seen a remarkable revenue and profit trajectory and is now a serious challenger in a very large and growing sector. It is already supplying over 45,000 different products to DIY and commercial builders, thanks to a disruptive model that offers swift nationwide doorstep delivery and competitive pricing to trade and retail customers. The UK market for these products is growing and with a strong brand proposition, a savvy digital marketing strategy and expanding and diversified product lines, CMO has a unique opportunity to expand very quickly with the resources, expertise and capital we are investing.
Mike Fell and Philip Duquenoy will join the board of CMO alongside operations director Callum Tasker, technical director Chris Dorey, e-commerce director Adrian Saunders and marketing director Liz Orgill.