LDC exits CMS Window Systems via Maven-backed MBO

The deal is the fourth investment made by the acquirer's Maven UK Regional Buyout Fund, which closed earlier this month on £100m. The GP has acquired a majority stake via the transaction.

Financial details remain undisclosed, though a statement by Maven revealed the deal involves the biggest equity cheque the GP has ever written; the firm's recently closed fund invests £5-15m per transaction.

The secondary buyout brings to an end a three-year holding period for the vendor, during which time the business increased its revenues by 25%, according to a statement.

Since LDC's initial investment, the business has expanded its manufacturing operations by expanding its Cumbernauld headquarters and opening a new PVCU door manufacturing and recycling plant in Kirkaldy. It has also secured new public sector contracts and sought to capitalise on the growing demand for energy-efficient building products and services. CMS has appointed a new CEO and launched an over-the-counter trade sales service.

Under Maven's tenure, CMS will look to expand its presence in the English social housing market.

The business anticipates revenues of around £40m for the year ending in March 2019, up from £28.4m in the year prior to LDC's investment according to a statement issued by the vendor. The company's headcount rose to 300 from 255 over the same time period.

Previous funding
LDC acquired a minority stake in CMS in 2016.

Company
Founded in 2006 and headquartered in Cumbernauld, Scotland, CMS provides PVCU and aluminium windows, doors and curtain walling systems. Its clients operate in the commercial construction and social housing sectors, with recent customers including Cala Homes, Balfour Beatty, North Lanarkshire Council and East Dunbartonshire Council.

The company says its products are environmentally friendly and are designed to improve energy efficiency. It designs, manufactures and installs its products, and provides aftercare.

People
LDC – Colin Bennet (investment director); Mark Kerr (head of LDC Scotland).
Maven Capital Partners – Andrew Craig (partner).
CMS Window Systems – David Ritchie (CEO).

Advisers
Vendor – BDO (corporate finance).

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• Topics
• Buyouts
• Exits
• UK / Ireland
• Industrials
• United Kingdom
• LDC
• Maven Capital Partners
• Secondary buyout
• BDO LLP