Cairngorm acquires majority stake in Polyframe

Kenny Wastell
08 July 2016

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Cairngorm Capital has acquired a majority stake in Polyframe Group, a UK manufacturer of windows and doors, as part of a management buyout in its maiden deal.

Under its new owners, Polyframe will invest in new equipment, as well as expand its production and distribution facilities. It will also seek to introduce new product ranges.

The company's CEO, Ian Macdougal, led the transaction following the retirement of founder and chairperson Martyn Buckley.

Upon completion of the deal, Cairngorm operating partner Oliver Robson will take on the interim role of chief operating officer at Polyframe.

Following the transaction, Cairngorm and the company's management will own 100% of Polyframe's equity.

The investment, which was sourced on an off-market basis, marks the first deal for Cairngorm. The GP was founded by former HIG Capital executive Andrew Steel and closed its maiden fund in August 2015 on its £50m target.

Cairngorm said it viewed the UK's Brexit vote as an "interesting period" for private equity firms prioritising strategic approaches over financial engineering. The firm is actively pursuing other potential deals following the referendum.

Debt
Clydesdale Bank provided a senior debt package to support the deal.

Company
Founded in 1992 and headquartered in Halifax, Yorkshire, Polyframe manufactures and distributes trade windows and doors. The business has a headcount of 470 across four manufacturing facilities and 12 distribution centres throughout the UK. It anticipates a turnover of around £50m in 2016.

People
Cairngorm Capital – Andrew Steel (managing partner).
Polyframe Group – Ian Macdougal (CEO); James Faulds (chairperson).

Advisers
Equity – PwC (financial due diligence, tax); Bond Dickinson (legal); CIL (commercial due diligence); Kurt Salmon (commercial due diligence); Nash Fitzwilliams (corporate finance).