Two investment firms already involved with the business may be considering taking control of the Independent Builders' Merchant Group (IBMG) as part of a financial restructuring.
IBMG, which is owned by private equity firm Cairngorm Capital, secured extra funding from Ares Management Corporation and Farallon Capital Europe in April last year. Now the two investors could be in the process of fully taking control of the group.
As reported by Sky News, "city sources said on Tuesday that a deal for Ares and Farallon to take over IBMG was likely to be implemented through a restructuring of the company's debt, rather than any form of insolvency event."
Since its creation in 2018, the group has made 20 acquisitions, bringing together Chandlers, Grant & Stone, Parker, and RGB, among several others. It now employes over 2,200 people in 177 branches, with revenues of £650 million, according to its website. The activities of the group encompass several divisions, such as roofing, timber, plumbing and heating, and distribution.
Cairngorm Capital said: "Interpath has been appointed by IBMG's shareholders to work on appropriate cost reduction initiatives, necessitated by the difficult cost environment that IBMG is operating in.
"Cairngorm Capital remains a majority shareholder although it has realised some of its investment."
