Tue, 24 Sep 2024 | BUSINESS SALE
VPI Products UK Limited, a County Durham-based manufacturer of premixed mortars and finishing products for the construction market, has expanded with the acquisition of a local counterpart.
Durham Render Centre is an established stockist and distributor of external coating products based at a 10,000 sq ft warehousing and distribution facility on Belmont Industrial Estate.
The company supplies direct to customer sites, including large main contractors, builders’ merchants, rendering/plastering contractors and sole traders, operating a region-wide fleet of vehicles.
VPI Products UK, based at nearby Littleburn Industrial Estate, is part of the VICAT Group. The company manufactures, imports and distributes a wide range of render products across the UK building services sector.
The acquisition complements VPI Products’ existing operations and service offering, while marking the culmination of Durham Render Centre’s succession strategy and enabling directors Dean Gray and Trevor O'Neil to retire. The remaining employees, including director Garry Welsh, will remain with the business post-acquisition.
VPI Products UK director Nick Cheek commented: "There are significant operational synergies to be gained from this strategic acquisition, which represents an exciting chapter for VPI Products UK Ltd. The addition of Durham Render Centre aligns with our ambitious growth plans that will undoubtedly complement our wide range of services, robust distribution network and overall customer experience."
Carl Wright, partner at Clive Owen LLP, which provided financial due diligence and fundraising support on the deal, said that the acquisition “will drive forward future growth and support the wider construction market.”
Alex Wilby, partner at Swinburne Maddison LLP, which handled the legalities of the transaction, said the acquisition was “a fantastic opportunity”, adding that “the deal was completed on time, on budget and in a manner that gives the company a great springboard for growth.”
Anglo Scottish Finance acted as the funding broker on the deal, with Head of Commercial Finance Stuart Wilkie and Business Development Manager Charlotte Enright saying the firm was able to “utilise our lending experience to structure a flexible and appropriate facility to support the acquisition.”
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