Maven Capital Partners, the Glasgow-headquartered private equity firm, has led the management buy-out (MBO) of a Cumbernauld-based window manufacturer.
CMS Window Systems, which Maven has acquired from Lloyds Banking Group’s private equity arm LDC, has completed an MBO which included “the largest equity cheque ever written” by the Glasgow investor.
The deal, full details of which have not been disclosed, represents the fourth investment made by Maven’s UK Regional Buyout Fund, which recently closed after raising £100 million from investors including Scottish Enterprise.
Maven has taken a majority stake in CMS to enable the business to “further pursue its social housing strategy” and to target the larger English market.
The manufacturer will also create jobs as it seeks to capitalise on the increased demand for energy-efficient windows and doors in new-build housing.
The firm employs almost 300 people and is on track to record revenues of £40 million for the current financial year.
Annual sales at CMS have risen by 25 per cent under its partnership with LDC. The business also opened an 8,500 square foot manufacturing and recycling plant in Kirkcaldy, increased production capacity at its Cumbernauld headquarters, and launched an over-the-counter trade sales service to supply sole traders and small business contractors under LDC’s tenure.
CMS chief executive David Ritchie said: “Partnering with Maven marks the beginning of an exciting new era for CMS and its employees, and will enable us to create new jobs as we grow.
“With our established management team continuing to lead the business, customers, supply chain partners and other stakeholders will experience no changes in working with us.
“We will be announcing more detail about our immediate plans soon, which will support our strategy to develop our share of the market for windows and doors in the new build housing, commercial, social housing and trade sectors.”
Andrew Craig, partner at Maven, added: “CMS has experienced year-on-year growth and is managed by an impressive management team with significant experience of the sector.
“The company has also invested heavily in its two manufacturing facilities ensuring that there is sufficient spare capacity to fulfil its undoubted growth potential.”
The sale was led by LDC investment director Colin Bennett, who sits on the board of CMS and head of LDC Scotland Mark Kerr.
CMS and its shareholders were advised in the transaction by BDO.