Grant & Stone and IBMG Merge as Largest Southern Merchants

BUILDERS MERCHANTS Grant & Stone Group and Independent Builders Merchant Group (IBMG) have merged, creating a builders’ merchant group with 123 branches across southern England.

The new Group extends from Cornwall to Kent and will have revenues in excess of £500 million and over 1,700 employees.

The new merchant group comprises builders’ merchants, electrical wholesalers, plumbers’ merchants, kitchen and bathroom showrooms, roofing merchants, a timber processing site, and a dedicated ecommerce business.

Investment for Growth

With investment from private equity firm, Cairngorm Capital, both companies have grown via a combination of acquisitions and organic growth. IBMG has grown from 15 branches and revenues of £67m in March 2018, to 39 branches and revenues exceeding £200m.

In parallel, Grant & Stone has scaled its business from 29 branches in the Thames Valley and revenues of £100m in November 2019, to 84 branches between London and Cornwall, and revenues in excess of £300m.

The companies say the move consolidates their position as the largest independent builders’ merchant group in southern England and creates a solid platform for continued growth, new market entry and further M&A activity.

At a group level, the new combined company will be known as Independent Builders Merchant Group. However, existing trading names and brands will continue to be used for all customer-facing activity.

Nick House, Group Chief Executive of Grant & Stone, will lead the new combined IBMG business, with Peter Cudd (Group Managing Director). They will be supported by a new Group Board, led by David Moore as non-executive Chairman and executive directors – Allun Pittingale (Group Managing Director for IBMG South East), Kevin Fenlon (Group Projects Director and Chief Executive of RGB) and Richard Robinson (Group Chief Financial Officer).

Ambitious Goals

Nick House, Group Chief Executive of IBMG, said “This merger is the natural progression for both

companies. Our branch networks and product ranges are highly complementary and our values, vision and commitment to customers are completely aligned, which creates exciting opportunities for us all.

“We have ambitious goals to fulfil but IBMG is well structured, with strong investor support, exceptional products, first-rate employees and a well-deserved reputation for superior service. I look forward to leading the next phase of development.”

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