A Wakefield manufacturer has announced the acquisition of one of its largest retail customers for an undisclosed sum.
The move will see Conservatory Outlet and Newcastle based Pennine Home Improvements under the same ownership. Funding to support the deal has been structured by Allied Irish Bank (GB).
As one of the top 2% of fabricators in the UK by volume, Conservatory Outlet manufactures window, door and conservatory products from its 60,000ft2 facility, supplying to a retail network of 24 installation companies that operate across the UK. This latest strategic acquisition is set to take the Group’s turnover to £25m – a reported five-fold growth achieved in the past seven years.
Greg Kane, CEO of the Conservatory Outlet Group, said: “We’re delighted to announce that Pennine Home Improvements and Conservatory Outlet have joined forces, bringing the manufacturing hub of our business closer to the customer than ever before.
“Pennine has been part of our network of retailers for just over three years, and has experienced an impressive 30% growth in that time, largely due to its highly committed management team and excellent internal processes. I’m certain our new vertical partnership will facilitate a level of knowledge-sharing never before seen in this market which will further support the growth and development of both businesses.”
Pennine Home Improvements will continue to operate as a separate retail business from its existing showrooms in Benton, Gosforth Park, Birtley and Ponteland. Graham Auld, the previous owner and managing director will exit the business. Mark Tinnion, the former brand director will become managing director and work alongside his fellow management team which includes Derek McLaren, sales director.
The combined ownership of the two businesses will allow further development of the group’s innovative product offer, processes and service features around the needs of the ultimate end-user.
Greg added: “The deal can only be of benefit to our wider network of independent retailers, of whom we’re extremely proud and equally as committed to supporting as ever – if they grow, we grow.”
Mark Tinnion, managing director of Pennine Home Improvements, concluded: “We’re really excited about joining forces with Conservatory Outlet and the opportunities for growth that it presents.
Our customers are at the heart of everything we do, and being closer to the manufacturing process can only enhance that.”