Acquisition: Polyframe Sells Trade Counter Business And Acquires Stevenswood Limited Site

In all the fuss and energy of the ending of the voting of the National Fenestration Awards, this latest major industry acquisition seems to have passed me by! Still, making amends, this is the reporting and my thoughts on the latest Polyframe acquisition and selling of a portion of their existing business.

Polyframe sells trade counter business…and buys a manufacturing site

It’s a two way sale this time around for Polyframe, in which they have sold their trade centres business to Scotland-based Stevenswood Limited, whilst at the same time purchasing a 55,000 square foot manufacturing site from Stevenswood.

This is their official statement published on their website:

Polyframe Group Limited (Polyframe), the leading manufacturer of trade windows and doors, announced today that it has sold its trade centres division, Polyframe Trade Centres Limited (PTC) to Stevenswood Limited and has acquired the 55,000 sq. ft. manufacturing site in Livingston from Stevenswood.

Polyframe began serving trade customers in 1992 with the vision of offering an unrivalled level of reliability, flexibility and customer service, together with the most extensive product range of windows and doors. It has grown to be one of the largest manufacturing companies of PVCu and aluminium windows, and composite doors within the UK, with six major manufacturing facilities across the country. Following the management-led buyout in June and subsequent strategic review, it was decided that these values would be best sustained by separating the trade centres business from its core fabrication activities.

Established in 1997 and headquarted in Livingston, Scotland, Stevenswood operates a network of 15 trade centres across Scotland, with a total showroom space of 70,000 square feet, distributing windows, doors and kitchens to the installer market. The acquisition of Polyframe’s 11 trade centres, which will all be rebranded as ‘Stevenswood’ by the end of December, accelerates its ambition to build a national trade counters business. Nicholas Summers, Managing Director of PTC will join the Stevenswood leadership team to help deliver this. The sale of its manufacturing operations to Polyframe allows Stevenswood to focus entirely on its core trade centre distribution activities.

Jon Gatfield, Polyframe’s Group Managing Director, commented “Our stated aim is to be the market leading trade fabricator of high quality windows and doors in the UK. This transaction allows us to focus our attention and investment to increase manufacturing capability, strengthen product development and expand Polyframe’s product range for the benefit of our customers.”

Ron Hepburn, Chief Executive of Stevenswood said, “Our goal is to increase our network of trade centres over the next five years, through a combination of further acquisition, new branches and organic growth to become the leading trade counter distributor in the UK. The purchase of the PTC network from Polyframe is the first step towards achieving this.”

Investors, Cairngorm Capital will retain their existing holding in PTC, which will be combined with the Stevenswood group and ensures Stevenswood has access to deep capital resources to fund its continued growth.

See the original article here

Sales to focus directions

Polyframe has made no secret of it’s desire to focus solely on it’s offer to installers. The sale of their trade centre business to Stevenswood, who already have a network of trade centres across Scotland will allow them to refine their business model, without having to be distracted by other side businesses at the same time.

Simultaneously, Stevenswood grows their trade centre operations across the UK, expanding their current business model. In theory, should the market hold up well over the coming few years, this sale should benefit both companies in the long term.

I also think that this won’t be the last acquisition from Polyframe to come. There are whispers of more in the pipeline. This is becoming quite a determined and almost relentless run by Polyframe, and they’re certainly shaping the wider industry. Given their M&A activity this year, and the whispers of what it to come, it makes Polyframe one of the companies, if not the company to watch in 2017.

A personal good luck from me to all involved in the transactions, and I hope the New Year is prosperous for both.