The Business Magazine - B2B Business News - Site Logo
The Business Magazine - B2B Business News - Site Logo
The Business Magazine May 2024
Read now
PICK YOUR EDITION

Building materials distributor IBMG attracts new investors

11 April 2024
Share
The Business Magazine article image for: Building materials distributor IBMG attracts new investors
Richard Robinson (left), CFO of IBMG, with CEO Martin Stables

Independent Builders Merchant Group (IBMG) has secured new investment from Ares Management and Farallon Capital Europe.

The raise was supported by founding sponsor Cairngorm Capital Partners, giving the East Sussex-headquartered building materials distributor a solid platform for continued growth, new market entry and further M&A activity.

IBMG has experienced strong growth since inception, posting revenues of over £650 million in 2023. It now has 182 branches throughout the South, stretching up to the Midlands.

It puts its success down to strong, locally established merchanting brands which provide best-in-class service to loyal customers, while benefiting from an integrated and sophisticated centralised infrastructure.

Despite the challenging market in 2023, IBMG was able to improve its trading margins, contrary to performance across much of the sector.

It says the continued support of Cairngorm Capital – and backing from new partners Ares and Farallon – will help accelerate its current initiatives.

That includes the launch this year of new customer propositions in renewables and sustainability, while IBMG looks to expand its independent brand network through new branches and M&A where strategically appropriate.

CEO Martin Stables said: “The IBMG business model is special and unique in the sector.

“With five specialist divisions, we can take any project from the ground to the roof ridge and ensure it’s supplied via an optimised supply chain minimising the miles travelled.

“At a project level, this ensures that the end result is both sustainable and incredible value, because IBMG helps to minimise wasted resources inherent in other supply chains.

“The new funding partnership delivers additional capital for growth, providing IBMG with greater financial flexibility, allowing for continued investment.

“Looking to the second half of this year and beyond, medium-term macroeconomics look very favourable for our sector.

“Thanks to the extraordinary hard work by our teams, along with all our partners and stakeholders, we’re well placed to deliver on the IBMG vision for even greater success.”

Andrew Steel, managing partner at Cairngorm Capital, added: “Despite the economic uncertainty of the last 12 months, IBMG’s investment thesis has been strong and continues to meet all our objectives.

“IBMG has achieved sustained success since our initial acquisition in 2018, becoming the largest independent building supplies merchant in Southern England in under four years.

“This partnership will maintain its strategic trajectory.

“We’re delighted to welcome Ares and Farallon as we embark on the next chapter of growth for IBMG.”

Ares partner James Kim added that he was ‘thrilled to partner with Cairngorm Capital and IBMG’ and impressed by the company’s talented management team and performance.

And Philipp Strepp, MD of Farallon, noted the firm’s resilience in recent months and expressed confidence that it would ‘continue to consolidate its part of the market’.


Born and raised in Berkshire, Dan fell into journalism after completing his bachelor’s degree in English at UCL.

Writing for The Business Magazine and local Biz News sites has given him the opportunity to chat with all manner of small business owners and share their success stories with a wider audience.

Outside of work, Dan enjoys live music, board games and quiz shows, and is making a slow but persistent effort to learn Spanish.

Related articles

Latest Deal Ticket

view more
Business consultants Magnetic (London)
have been acquired by
Management consultants Newton Europe (Oxford)
May 2024
UNDISCLOSED
Who's behind the deal?

Upcoming events

view more
06
Jun

South Coast Property Awards 2024

Hilton Southampton
Utilita Bowl
More info
12
Jun

Leadership Roundtable: Developing strategies for financial returns over the next decade

Herrington Carmichael, Farnborough Aerospace Centre, GU14 6XR

More info
09
Jul

Leadership Roundtable: Opportunities and challenges in the Care Sector

Herrington Carmichael
Farnborough Aerospace Centre, GU14 6XR
More info
18
Jul

Thames Valley Tech & Innovation Awards 2024

Reading FC Conference & Events
Select Car Leasing Stadium, Reading
More info
23
Jul

Leadership Roundtable: Search Fund Exits & Acquisitions

Shawbrook Bank
9 Appold Street, London EC2A 2AP
More info
26
Sep

Thames Valley Property Awards 2024

Ascot Pavilion
Ascot Racecourse
More info
03
Oct

South Coast Tech & Innovation Awards 2024

Hilton Southampton
Utilita Bowl
More info
07
Nov

Thames Valley Deals Awards 2024

Reading FC Conference & Events
Select Car Leasing Stadium, Reading
More info
21
Nov

Hampshire Business Awards 2024

Farnborough International
Exhibition & Conference Centre
More info

Related articles

Group Companies

Dorset BIZ NewsHampshire BIZ News