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Disruptive online builders merchant floats on AIM

Key Capital Partners (KCP) are pleased to announce that portfolio company CMO has listed on AIM at a market capitalisation of £95 million. The IPO will provide KCP with a 6.2x return on float. Following the IPO, KCP will continue to hold a significant minority stake in the company. This is the second exit for KCP via IPO, having previously backed the disruptive online musical instrument retailer Gear4music, which floated in 2015.

Following KCP’s investment in April 2017, CMO has evolved into the UK’s largest online only retailer of building materials, disrupting a £27 billion, predominately offline market, with a digital first proposition and market leading product choice, supported by high quality customer service and technical expertise. Operating through seven websites, the company provides the convenience of online retail, with a vast range of products available to customers delivered direct to home or to builders on-site.

Since investing in CMO, KCP has supported the management through a period of rapid growth. The business has expanded from three to seven websites, including two acquisitions, and invested significantly in the infrastructure, including personnel, systems, premises and corporate governance.

Commenting on the IPO, Chief Executive Dean Murray said: “Today marks a significant landmark in CMO’s corporate journey and will provide the company with the platform to continue to deliver our growth ambition.

“CMO has an exciting opportunity ahead as we continue to capitalise on our first-mover advantage and digital platform to further increase market share as customers increasingly move online for their building materials requirements.

“We are particularly encouraged by the strong demand we have experienced from high calibre institutional investors, which is clear validation of CMO’s market opportunity and strong future growth potential.”

KCP Partners Mike Fell and James Excell commented: “We are delighted to deliver another excellent result for KCP investors. CMO is a unique business and has gone from strength to strength over the past four years. It has been a pleasure to work with the management team and we look forward to supporting them through the next stage of development.”

Posted in All, Exits on Jul 08, 2021