Ares and Farallon to take management of builders service provider IBMG

Lenders to considered one of Britain’s largest networks of builders’ retailers are angling to take management of the corporate amid talks with its non-public fairness backer over new funding necessities.

Sky Information has learnt that Ares Administration Company and Farallon Capital Europe, two main funding corporations, might transfer to take possession of Impartial Builders Service provider Group (IBMG) within the coming weeks.

Metropolis sources stated on Tuesday {that a} deal for Ares and Farallon to take over IBMG was more likely to be carried out by a restructuring of the corporate’s debt, moderately than any type of insolvency occasion.

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IBMG was based with monetary backing from Cairngorm Capital, a personal fairness agency, in 2018, and has grown since then by greater than 20 acquisitions.

In accordance with Cairngorm’s web site – the place IBMG is listed as a ‘realised funding’, which a spokesperson for the agency stated was “in error” – IBMG now has greater than 170 branches throughout the south of England.

It employs greater than 2,000 folks and recorded revenues of roughly £650m in its newest monetary yr.

IBMG operates by a number of divisions, together with plumbing and heating, roofing and timber processing and distribution.

The corporate introduced in April 2024 that it had secured new capital from Ares and Farallon however stated on the time that this is able to be with “the continued help of Cairngorm Capital”.

Cairngorm Capital stated: “Interpath has been appointed by IBMG’s shareholders to work on acceptable price discount initiatives, necessitated by the tough price surroundings that IBMG is working in.

“Cairngorm Capital stays a majority shareholder though it has realised a few of its funding.”

Ares, Farallon and Interpath declined to remark.