CMS Window Systems agrees investment deal with LDC

CMS Enviro Systems Ltd – trading as CMS Window Systems (CMS) – has agreed a significant growth capital investment deal with Lloyds Development Capital (LDC). BCMS featured as lead advisor to the shareholders of CMS during the transaction, which completed in 2016.

CMS was founded in 2006 by Andy Kerr and is headquartered in Cumbernauld, employing more than 255 people. Specialising in energy-efficient and environmentally-friendly products, including PVCu, aluminium and timber composite, windows, doors and curtain walling systems, it supports customers as they procure and deliver some of the largest housing investment programmes and commercial build projects in the UK. It also provides services from design and manufacture, through to installation and aftercare.

To meet increased market demand for a full-service supply chain partner, the business has an in-house structural engineer and design team, which can provide added-value services such as value engineering, Building Information Modelling (BIM) and project management with all extracted waste processed at its dedicated recycling facilities. This is a distinct differentiator in the sector, and has helped the company deliver strong revenue growth, with double-digit increases in turnover.

The deal sees founder and chief executive Andy Kerr, and his management team, remain as the majority shareholders, with LDC acquiring a minority stake.

Transaction commentary

Commenting on the transaction, Andy Kerr said: “The foundation of our business is firmly rooted in sustainability, both in terms of our products and the way we operate, and as demand for energy-efficient building solutions continues to increase, and companies pay closer attention to meeting sustainability targets, we’re well-positioned to support customers across the construction industry.

“With LDC’s investment and backing, we’re now in an even stronger position to continue investing in our operations, scaling the business further and expanding across Scotland and England.”

Colin Bennett, investment director at LDC, added: “CMS Window Systems is a unique and ambitious business, not only has it identified a genuine point of difference in the market, it has continued to innovate to ensure it remains highly relevant to a broad customer base.

Andy Denny, Director, BCMS, added: “While there was significant interest in CMS from a range of organisations – including major trading companies – Private Equity is the ideal option for this dynamic, growing business. LDC’s investment will help drive the company forward and cement a leading position in its market.

“BCMS is now delivering more PE deals than at any other time in our history, and securing Private Equity platform investment is an increasingly popular outcome for BCMS’ larger clients. We are delighted to work alongside LDC, with its ongoing commitment to funding businesses in our marketplace.”