News > Corporate Finance > Adviser to Key Capital Partners on its investment in Construction Materials Online
Dan James, Transaction Services Director, Wilson Partners.
22 May 2017

Adviser to Key Capital Partners on its investment in Construction Materials Online

Wilson Partners Corporate Finance is delighted to have advised Key Capital Partners (“KCP”) on its investment to support the MBO of Construction Materials Online Limited (“CMO”).

“Wilson Partners provided invaluable support to the KCP team throughout the CMO transaction. Dan and his team demonstrated a strong understanding of the business and their report focussed on the key issues relevant to KCP”
James Excell, KCP

Private equity house Key Capital Partners (KCP) has acquired a majority stake in Construction Materials Online Ltd (CMO), backing an MBO of the £25m-revenue business that employs 40 staff.
CMO, headquartered in Plymouth, is an online retailer of construction materials that has grown sales by 55 per cent in the last 12 months through its RoofingSuperstore.co.uk, DrainageSuperstore.co.uk and InsulationSuperstore.co.uk websites.

The investment was led by KCP’s Mike Fell, Philip Duquenoy and James Excell. Mike and Philip will join the board of CMO alongside operations director Callum Tasker, technical director Chris Dorey, e-commerce director Adrian Saunders and marketing director Liz Orgill.

As part of the MBO, former Gear4music chairman Dean Murray will join CMO as Chairman to lead the business through its next stage of growth.

Clydesdale Bank Corporate and Structured Finance team in the South West and Midlands, led by Ian Howey and Ian Mansell, provided senior debt and working capital facilities to support the KCP investment.

KCP Partner Philip Duquenoy commented:

“CMO has seen a remarkable revenue and profit trajectory and is now a serious challenger in a very large and growing sector. It is already supplying over 45,000 different products to DIY and commercial builders, thanks to a disruptive model that offers swift nationwide doorstep delivery and competitive pricing to trade and retail customers. The UK market for these products is growing and with a strong brand proposition, a savvy digital marketing strategy and expanding and diversified product lines, CMO has a unique opportunity to expand very quickly with the resources, expertise and capital we are investing.”

Dan James, Head of Transaction Services at Wilson Partners added:
“It was great to work with the team at KCP on this investment. CMOs disruptive business model and vertical integration has positioned it for an exciting future”.

About KCP
Key Capital Partners specialises in the lower mid-market and it is seeking to invest equity sums of between £3m and £15m

About CMO
Construction Materials Online is a leading online supplier of construction materials in the UK

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