Cairngorm Capital buys majority stake in Bromborough

Directors Giuseppe Alfonso, John Ferrington and Dan Peacock are investing as part of the MBO, the GP said in a statement.

Managing director and owner Neville Wellings is to retire following the deal. Jon Gatfield will join the company as chairman.

Cairngorm is investing via Cairngorm Capital III. The fund made its first investment in 2019, acquiring builders' merchant Grant & Stone. The fund also acquired Whyte Bikes earlier in March 2021.

The GP generally invests in UK-based mid-market companies in sectors including assisted living, building materials and financial services. The firm targets companies with operating profits of £2-20m, following buy-and-build strategies to support their growth.

Cairngorm said in a statement that it intends to support the expansion of Bromborough's geographic distribution via new branch openings and acquisitions.

Debt
The GP said in a statement that Arbuthnot Commercial ABL provided asset-backed and cashflow debt facilities to support the deal.

Company
Founded in 1948, Bromborough Paint & Building Supplies is headquartered in Bromborough, Wirral. The company distributes paint, wall coverings and decorating tools. It also offers colour tinting and paint mixing at its sites. The company employs 100 staff across its 17 branches in the UK and posted 2020 revenues of £17m. The firm will also open a new branch in Warrington within the next few weeks, according to a statement.

People
Cairngorm Capital – John Naylor-Leyland (managing director).
Bromborough Paint & Building Supplies – Jon Gatfield (board chairman); Giuseppe Alfonso, John Ferrington, Dan Peacock (directors).

Advisers
Equity – BDO (financial due diligence, tax); Womble Bond Dickinson (legal); Drystone (commercial due diligence); Atlas (commercial due diligence).
Vendor – Hill Dickinson (legal).

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