MKM makes plans to grow as it completes £25m refinance
MKM Building Supplies, the UK’s largest independent builders’ merchant, has completed a £25m refinance to support plans to expand its branch network.
Hull-headquartered MKM, which employs more than 840 staff and has 42 sites across England and Scotland, has refinanced with Lloyds Bank, which also provided debt financing to support the buyout of the business in 2006.
The financing agreement will support plans to expand the MKM branch network into new geographic territories. Earlier this year the company, which provides building, timber and plumbing products predominantly to independent tradesmen and the public, opened branches in Durham and Castleford, which gave it a presence in West Yorkshire for the first time.
David Kilburn, CEO at MKM, which is backed by private equity firms 3i and LDC, said: “Through a combination of strategic branch openings and placing customers at the centre of our operations we have established a market leading position.
“The new funding ensures that we can capitalise upon this position and provides us with a strong base from which we can continue to expand our branch network. There are considerable geographic areas across the North of England that offer potential for growth and our strategy is to access these markets.”
Gary Styles from Lloyds Bank’s acquisition finance team and Richard Townsend from the mid markets division in Hull advised on the refinance.
Styles said: “MKM’s management team have built a fantastic brand and a highly successful business based around the principles of excellent customer service and the recognition of staff values. This new funding structure strengthens the company’s medium to long term proposition and ensures they are well placed to capitalise on the opportunities presented by the economic revival and upturn in consumer confidence.”
