RSM and DMH Stallard advise on major South East construction merger

RSM's corporate finance team and law firm DMH Stallard have advised the shareholders of East Sussex-based Chandlers Building Supplies Holdings Limited on the company's merger with Parker Building Supplies.

The merger, which has been completed with the support of Parker's strategic partner, Cairngorm Capital, will result in an enlarged company with 38 branches operating from the Midlands to the South East, with combined revenues of £180m and over 750 employees.

Established in 1993, Chandlers is a privately-owned, independent builders' merchant offering a mix of heavy and lightside building materials to the construction industry. It has 14 branches serving Sussex, Kent, Surrey, London, Essex and the West Midlands, including six specialist roofing supplies centres. Headquartered in Ringmer, East Sussex, it generates revenues of £60m and employs over 230 people.

Parkers, together with its sister brands Stamco and Fairalls, is the largest independent builders’ merchant group in the South East. In addition to its heavyside offering, the group also supplies kitchens, plumbing, heating, bathrooms, joinery and architectural ironmongery to provide a complete solution to its retail and trade customers. Headquartered in Polegate, East Sussex, the group has 24 branches serving Surrey, Sussex and Kent, over 500 employees and combined revenues of £120m.

Andrew Cope, Chandlers’ Managing Director will join the board of the new combined company as a Board Director. The senior management teams of both companies will merge under the leadership of Chris Maityard, Parkers’ Managing Director, to scale the business and generate further growth, ensuring that the company fulfils its potential. 

RSM Corporate Finance and DMH Stallard’s advice on the merger included assistance with a group and LLP partnership reorganisation, a property demerger, and liaising with a broad shareholder group, consisting of three families, two trusts, and a number of subsidiary shareholders.

Kirsty Sandwell, RSM's head of M&A, was lead adviser on the deal, supported by David Rowlinson and Ravi Patel. Kirsty said: 

'The evolution of the Chandlers business over many years resulted in a complex ownership structure involving three families, and this meant there were a number of property and tax planning hurdles to overcome. Merging a family business like this with a larger private equity-backed player is not always straightforward, so we were delighted to be able to use our experience to guide the families through the process and get this deal over the line.'

Helen Mead, Partner at DMH Stallard, who led the legal team advising Chandlers with Tom Watkins (Partner, Property) and Kate Norgett (Partner, Corporate) said: 

'This is a major regional transaction that creates a real powerhouse in the building supplies sector. Chandlers has been a long-standing client of mine for many years and has grown to become a fantastic south east business, employing over 230 people. The merger with Parker Building Supplies will give these dynamic businesses the strategic platform for even greater growth and development.'