The new enlarged company has combined revenues of £180m and over 750 employees.
The merger of Chandlers Building Supplies and Parker Building Supplies – both based in East Sussex - was carried out with the support of strategic partner Cairngorm Capital.
Chandlers is a privately-owned, independent builders’ merchant offering a mix of heavy and light-side building materials to the construction industry. It has 14 branches serving Sussex, Kent, Surrey, London, Essex and the West Midlands, including six specialist roofing supplies centres. It generates revenue of £60m and employs over 230 people.
Parkers, together with its sister brands Stamco and Fairalls, operates in the South East. In addition to its heavy-side offering, the group also supplies kitchens, plumbing, heating, bathrooms, joinery and architectural ironmongery to retail and trade customers. The group has 23 branches serving Surrey, Sussex and Kent, over 500 employees and combined revenues of £120m.
The companies said that there is no overlap in branch locations and that they have a complementary product range, making the merger is strategically important in offering both the opportunity for geographic expansion and to extend their product ranges.
The senior management teams of both companies will merge under the leadership of Chris Maityard, Parkers’ chief executive. Maitland said: “This merger consolidates our leadership as an independent in the South of England. Our company is at a really exciting point in its development and is ready to capitalise on the numerous growth opportunities available to it. We have ambitious plans to fulfil but are able benefit from strong investor support, exceptional products, first-rate employees and a well-deserved reputation for superior service. I look forward to the next phase of its development.”
Andrew Cope, Chandlers’ managing director, added: “This merger is exciting and will deliver great things. I am looking forward to joining the board of the wider business and working together with the Parkers’ Directors to develop the long-term strategy and future direction of the new company. We are completely aligned in our ambitions for the company and how we achieve them, as well as having a shared approach to product excellence and outstanding customer service.”
South east law firm DMH Stallard has advised Chandlers Building Supplies on the transaction. Helen Mead, partner at DMH Stallard, led the team advising Chandlers. “This is a major regional transaction that creates a real powerhouse in the building supplies sector,” she said. “Chandlers has been a long-standing client of mine for many years and has grown to become a fantastic south east business, employing over 230 people. The merger with Parker Building Supplies will give these dynamic businesses the strategic platform for even greater growth and development.”