MKM secures funding extension to build further growth
Published: 26 October, 2012
HULL: MKM Building Supplies has extended its funding facilities with Lloyds Bank Wholesale Banking and Markets Acquisition Finance to fuel its ongoing growth strategy.
The company, which is backed by private equity firms 3i and LDC, is a long-standing client of Lloyds Bank – which provided debt financing to support the buyout of the business in 2006.
The Hull-headquartered company, which employs approximately 670 people, provides a wide range of building, timber and plumbing products predominantly to independent tradesmen and the public.
The firm holds a comprehensive range of stock at each of its 39 sites in England and Scotland to ensure strong product availability, and operates free delivery services for its customers.
The financing agreement will extend the company’s existing debt facilities and provide a renewed capital structure, tailored to the group’s continued growth strategy.
With the support of Lloyds Bank and its private equity backers, MKM can now continue to explore opportunities to achieve further geographical expansion.
David Kilburn, executive chairman at MKM, said: “We have developed a strong market leading position through a combination of strategic branch openings and keeping our customers at the heart of our operations.
“This latest deal provides us with an even stronger financial footing from which to continue to target new sites, improve the breadth of our product offering, and enhance our services to the trade and the public.
“Since the business was established, Lloyds Bank has been a highly supportive partner and this financing illustrates the team’s belief in our model and long-term growth plans.”
Gary Styles, director at Lloyds Bank Wholesale Banking and Markets Acquisition Finance, led the deal. He commented: “Compared to the house building sector, spend on essential and small building works has held up relatively well during the downturn. Operating largely in the repair, maintain and improve sub-sector, MKM’s business model has shown good degrees of resilience in recent years.
“The company’s experienced management team has developed a recognised, high quality builders’ merchant, which is well placed to continue to realise its growth potential with the backing of 3i and LDC. We are pleased to also play our part in this success story.
“This deal illustrates our appetite to provide through the cycle funding support to ambitious, UK mid-market businesses, whose expansion can significantly improve their regional economies.”