Transaction Details

May 16, 2017
London

Sector

Consumer, Retail, E-commerce and Leisure, Digital Media and Media

Deal Type

M&A

Deal Value

N/D

Deal Team

Sam Fuller, Katherine Hobbs, Declan O’Connor

GCA Altium advises Construction Materials Online on the MBO backed by Key Capital Partners

GCA Altium acted as exclusive financial advisor to the shareholders of Construction Materials Online, a rapidly growing online retailer of building materials, on the MBO backed by Key Capital Partners.

Founded in 2008, CMO is a operator of retail websites supplying DIY builders and small building contractors. CMO employs 40 staff in Plymouth and has grown sales through its RoofingSuperstore.co.uk, DrainageSuperstore.co.uk and InsulationSuperstore.co.uk websites by 55% in the last twelve months.

CMO operates a de-risked, differentiated and disruptive business model compared to the traditional merchant route to market. A dropship model direct from suppliers enables the company to offer a comprehensive range of product with no stock risk.

The four founders, having come from a traditional merchant background and grown CMO to a £25 million revenues business, were keen to derisk and pass on the reins to the management team and investor for the next phase of its growth. GCA Altium ran a sale process on behalf of the founder shareholders and the company and selected KCP as the stand out partner for CMO due, amongst other things, to their strong track record of growing eCommerce businesses.

Rob Kavanagh, co-Founder of CMO, said: “I worked with Katie, Sam and Declan for three years. Over this time, they worked very hard to get a fantastic understanding of our business and the key values of the founders to ensure we met with the right investors for us. They introduced us to all the major trade players as well as many potential investors who we never would have met. They also helped us identify key areas of focus to make our business better which ensured we were able to find the right investor for the next phase of the business. When we found the right investor, the GCA Altium team pushed hard to be certain we got a fair deal and then worked tirelessly through the process to help and guide us to a successful outcome. I would have no hesitation in recommending these guys to anyone.”

Sam Fuller, Managing Director at GCA Altium, commented: “With its disruptive business model CMO has a real opportunity to challenge the traditional route to market, in what remains a large, fast growing sector. KCP has a strong track record in the lower mid-market as well as in growing online businesses and the business will benefit from their support and expertise as it looks to continue its strong growth trajectory. We wish KCP and the management team all the best as they enter an exciting period in the development of the business.”

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