Maven leads MBO of CMS Window Systems

The transaction includes the largest equity cheque written by Maven as well as debt funding from Clydesdale Bank led by its corporate and structured finance team, and additional equity from the Scottish Investment Bank.

Exiting investors include mid-market private equity firm, LDC.

CMS specialises in designing, manufacturing and installing energy-efficient and environmentally-friendly products, including PVCu and aluminium, windows, doors and curtain walling systems. Established in 2006, CMS operates from its 15-acre, state-of-the-art, headquarters in North Lanarkshire with an additional door manufacturing facility in Fife.

The Company undertakes contracts for some of the largest housing investment programmes and commercial build projects in the UK and has long-standing relationships with many of Scotland’s local authorities to refurbish their social housing stock, and has recently extended its reach to local authorities in the North of England. CMS commands a strong market position, with the business possessing the capabilities and experience to undertake large and complex projects across all commercial, social, and private housing markets.

Its capability to complete client projects across several market channels has led to a record year for CMS. New commercial contracts, such as the flagship Atlantic Square development in Glasgow, and strong recurring revenues from long-standing customer relationships, have contributed to turnover increasing to over £36 million.

Maven has taken a majority equity investment in the company which will enable CMS to further pursue its social housing strategy, targeting the larger addressable market in England, as well as capitalising on the increased demand for energy-efficient windows and doors in new-build housing.

The transaction is the fourth investment made by Maven’s UK Regional Buyout Fund, which recently announced its final close, having raised £100 million from a diverse range of investors, including Scottish Enterprise - Scotland’s national economic development agency, family offices, high net-worth syndicates, pension funds, fund of funds and asset managers.

Andrew Craig, partner at Maven, said: “CMS is one of the leading manufacturers and installers for window and door solutions in the UK, and we are delighted to add this ambitious business to our growing portfolio. The transaction demonstrates our aim to support management buyouts in some of the most impressive and entrepreneurial businesses in the lower-mid market. CMS has experienced year on year growth and is managed by an impressive management team with significant experience of the sector. The company has also invested heavily in its two manufacturing facilities ensuring that there is sufficient spare capacity to fulfil its undoubted growth potential.”

David Ritchie, CEO of CMS Window Systems, added: “Partnering with Maven marks the beginning of an exciting new era for CMS and its employees, and will enable, us to create new jobs as we grow. With our established management team continuing to lead the business, it is very much ‘business as usual’ so customers, supply chain partners and other stakeholders will experience no changes in working with us.

“We will be announcing more detail about our immediate plans soon, which will support our strategy to develop our share of the market for windows and doors in the new build housing, commercial, social housing and trade sectors. We have an excellent team in place to drive the business forward in partnership with Maven, building on the strengths that our customers value and providing high performance window, door and curtain walling solutions to many more new customers too.”

David Henderson regional head of corporate and structured finance at Clydesdale Bank, said: “Clydesdale Bank has a track record of providing acquisition funding to a wide range of businesses and sectors across the UK. CMS is a business we have followed closely in recent years and we have been impressed by the quality of the management team, the strong customer relationships they have developed and consistent delivery in their chosen markets. We have been delighted to work with CMS and Maven to complete this buy-out transaction, and look forward to supporting David and his team in achieving CMS’ future growth and development plans.”

Kerry Sharp, director of the Scottish Investment Bank said: “We’ve worked closely with Maven and CMS Window Systems to create a tailored funding package which provides additional monies to allow the company’s plans for a Management Buy Out to become a reality.  Being able to participate through both the Maven UK Regional Buy Out Fund and our Scottish Co-Investment Fund demonstrates the innovative ways that we can provide a variety of funding options across multiple sectors, and we look forward to working with the company over the next few years.”

Colin Bennet, investment director at LDC in Edinburgh, said: “Innovative, forward-thinking companies like CMS are the reason Scotland’s Central Belt is such an exciting and dynamic place to do business. Over the last three years, the business’ ambition and high-quality, modern offering has translated into strong and sustainable growth, both in Scotland, and across the rest of the UK. It’s been very rewarding to support David and the team and we wish them luck on the next step of their growth journey.”