Management buyout at one of Yorkshire’s largest privately owned builders’ merchants

08th Feb

Builders’ Merchant Company (BMC), based across North Lincolnshire and Yorkshire, has successfully completed a management buyout, heralding a new era for the business.

With four branches across Lincolnshire, the Humber region and South Yorkshire, the independent builders’ merchants have seen significant growth over the past five years, with a projected 2021 turnover of about £12 million – and is set for further investment and growth this year. The business has also appointed two new directors to further enhance the management team. There has been a major new investment into introducing plumbing and heating materials to its portfolio of products and this is being rolled across all branches this year, having started in Hull. The business also has a vision to open a further five branches over the next few years.

The management buyout was led by new majority shareholders, existing managing director, Duncan Thomson, and financial director, Jane Thomson, a husband-and-wife team who have headed the operational role for the past 11 years. The buyout has provided the appropriate structure to make future growth plans a reality for the management team and staff.

New chairman David Hewitt has brought a wealth of business experience to BMC and is supporting the operational management team, led by commercial director Steve Quigley.

David said: “We have seen significant growth over the past five years and this MBO is timely as we push ahead for further expansion. Steve joined the business five years ago and has been part of the financial turnaround and secured our strong profitability. We are going into 2022 in a strong position, with the business in good shape.”

Majority shareholder Duncan Thomson said: “We have always wanted our own business, and here we are after many years of hard work, this is now a reality. Our strategy has been a minimum for five branches in five years and we are currently identifying several opportunities and developments for us to explore in the near future. There are exciting times ahead.

“As with any important business change, we will always continue to work closely with our customers and suppliers, ensuring our customers will always receive the same high standards they have always expected.”

Leading the buyout financially was Tony Bulllock, managing partner at Dutton Moore Chartered Accountants and Business Advisers in Hull. Tony said: “BMC has seen significant financial growth and has pushed into a strong position of profit in recent years. This buyout secures the next few years and the plans for further business expansion and profit margins.”

First opening its doors in 1928 by the Jewitt family, the branches in Scunthorpe, Hull, Rotherham and Goole supply to both trade and the public. The business has built its reputation on traditional values and outstanding customer service and is a one-stop-shop for all timber, building, plumbing and heating materials from leading industry manufacturers.

The new board thanks George Jewitt, managing director of the previous holding company, Glenrock, for his dedication in the past years as the principal shareholder in BMC. George is remaining a shareholder within the company his grandparents started and added: “I am pleased the reins of BMC are in the safe hands of Duncan and Jane, and the new holding company, Thomson Building Supplies, and I am sure it will go from strength to strength.”

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