Cairngorm acquires MJ Wilson

Kenny Wastell
05 February 2018

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Cairngorm Capital has acquired MJ Wilson Group, a UK-based distributor of industrial components.

The deal forms the basis for a buy-and-build strategy for Cairngorm, which is looking to create a nationwide full-service maintenance, repair and overhaul (MRO) group.

Cairngorm said in a statement that it was "partnering" with a team of MRO executives led by former Brammer UK managing director Ian Ritchie for the platform investment.

The transaction is the second investment made by Cairngorm Capital II, which closed in April 2017 on its hard-cap of £107.5m. The fund typically invests in mid-market companies with operating profits of £2-20m. In November, it acquired majority stakes in Scottish timber company Thornbridge Sawmills.

Barclays provided credit facilities to support the transaction.

Company
Headquartered in Grimsby and founded in 1972, MJ Wilson is a distributor of MRO components including valves, controls, test equipment, pipe, fittings, flanges, fastenings and gaskets. The business has five regional branches across England and Wales.

MJ Wilson generated a turnover of £14.9m in the year ending February 2017 with an operating loss of £700,000, according to publicly available documents.

People
Cairngorm Capital – Amit Thaper (investment director).
MJ Wilson – Gareth Wilson (executive chairperson).

Advisers
Equity – PwC (financial due diligence, tax); Gowling WGL (legal); CIL (commercial due diligence); Intuitus (IT due diligence); JLT (insurance due diligence).
Vendor – Evolution CBS (corporate finance); Blow Abbott (financial due diligence); Walker Morris (legal).
Management – Browne Jacobson (legal).