Nature of Business
MKM Building Supplies is the largest independent builders’ merchant in the UK, providing building, plumbing and timber supplies to customers in the building trade and the general public.
MKM was established in 1995 by David Kilburn and Peter Murray, who both had gained experience from working at one of the national merchant chains. Their vision for MKM was to create a business where knowledgeable local people served the local industry.
MKM aims to differentiate itself by delivering unprecedented levels of service through employing and retaining the very best staff, underpinned by excellent relationships with suppliers and customers.
3i first backed MKM in 1998, taking a minority stake which enabled the exit of various shareholders and released funds to incentivise key management. With the business performing strongly, we recognised the opportunity for nationwide growth and agreed with management to make a further investment in 2006 to enable this.
Our investment has supported the company’s nationwide roll-out strategy from 20 to 42 branches across the country and a reputation for service excellence.
Through our Business Leaders Network, we introduced Stuart Rose as Chairman who has brought a wealth of retail experience to the business. We also introduced CEO Philip Johns who had previously run a 200 branch division of SIG.
The business has consistently grown like for like sales well above its listed peers through superior service and category expansion. The pipeline for new branches is very strong and a continued store roll-out is a substantial part of the growth strategy.
Regulatory notice: This transaction involved a recommendation of 3i Investments plc.