MDW Capital supports Cairngorm Capital Partners LLP on their latest acquisition
MDW Capital Partners LLP (“MDW Capital”) is delighted to announce that it has advised Parker Building Supplies (“Parkers”), a portfolio company of Cairngorm Capital Partners (“Cairngorm Capital”), on its acquisition of Sussex Turnery & Moulding (“Stamco”).
Parkers, which has enjoyed transformational growth since its acquisition by Cairngorm Capital in 2018, is a regional platform in the South East. The acquisition of Stamco is the first add-on in its planned buy-&-build and operational transformation strategy that will see the group grow to be the clear regional leader. As former private equity capital markets specialists, and importantly, borrowers, MDW Capital had a clear understanding of the Cairngorm Capital investment strategy and what both Parkers and Cairngorm Capital were seeking from a debt facility. Working in close partnership with management and Cairngorm Capital, MDW Capital advised the company in arranging a bespoke financing structure that recognised the value created by the company’s transformation since acquisition, enabled Parkers to finance the Stamco acquisition, provided enlarged working capital facilities to support the enlarged group’s rapid organic growth and gave the business significant additional firepower to pursue its M&A strategy with high confidence.
The resulting debt facility is innovative and highly flexible, achieving all of Cairngorm Capital’s and Parkers’ objectives.
David Culpan, MDW Capital Managing Partner noted “Cairngorm Capital had made a significant capital investment in Parkers and, with a new management team and the involvement of Cairngorm Capital’s outstanding Operating Partners, were successfully transforming performance. The Stamco add-on is a highly attractive opportunity that increases the Group’s geographic footprint and significantly accelerates profit growth. We are proud to have helped ensure this acquisition is the first of many for Parkers that will deliver strong value creation for Cairngorm Capital.”
Alex Bayliss, Managing Director, Cairngorm Capital, also commented “the team at MDW Capital understood what we needed and gave us confidence from the outset about the achievability of such a complex financing. Their track record as capital market specialists and borrowers enabled them to articulate the story carefully, positioning the opportunity to prospective partners with great skill. More than that, though, their style and approach meant we felt like the MDW team was working within our own deal team, not just as an external advisor. This debt facility perfectly positions Parkers with fantastic flexibility and capital firepower while it integrates Stamco and considers other add-ons.”