Clear ambition for growth as CMS Enviro secures LDC investment

CMS Window Systems, the leading provider of 360-degree building envelope solutions to the commercial construction and social housing sectors, has secured a significant minority investment from mid-market private equity firm LDC. The deal will support the business’s expansion as it continues to capitalise on increased demand for energy-efficient products and services, further fuelling the organic growth of the company across Scotland and England.

The company, a trading name of CMS Enviro Systems Ltd, was founded in 2006 by Andy Kerr and is headquartered in Cumbernauld, it employs 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, BIM-modelling 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 recorded year-on-year since 2013.

Through its state-of-the-art manufacturing and recycling facilities in North Lanarkshire and Fife, CMS Window Systems has established itself as a provider of innovative and sustainable products – in 2010 the company introduced the UK’s first zero carbon fully-reinforced (0.8 uValue) window. It also supports local authorities and housing associations with the removal, recycling and replacement of windows and doors, taking ownership of the full product lifecycle.

To continue its commitment to sustainability, the company established the CMS Innovation Hub, Scotland’s first commercial innovation centre for energy-efficient building design, products and services. The 10,000 sq. ft. facility in North Lanarkshire sees firms across the supply chain, such as Yale/Sealco, Rockwool, Sheerframe, Saint-Gobain and Metal Technology, showcase the latest energy-saving products for use in domestic and commercial buildings, enabling specifiers, developers, architects, public and private sector buyers and contractors to access a full suite of products in one place.

The deal sees founder and chief executive Andy Kerr, and his management team, remain as the majority shareholders, with LDC acquiring a minority stake. Billy Allan will also join the board as non-executive chairman. Allan has significant industry experience, having held a number of senior board positions across the UK, including his role as chief executive of Aberdeen-based oil support services group, ASCO, non-executive chairman of support services group Europa, and prior to that chief executive of EJ Steill. Allan is currently non-executive chairman of Edwin James Holdings and Bowleven plc.

The transaction was led by LDC investment director Colin Bennett and LDC’s head of Scotland Mark Kerr, both of whom will join the board as non-executive directors.

Commenting on the deal, 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. This is an exciting time for our team, and LDC’s track record and expertise will help us continue providing customers across the commercial and public sectors with the highest-quality products and services.”

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 and the management team have built a truly impressive organisation, consistently delivering a high-quality service to customers and demonstrating further potential for growth. With the added expertise of Billy joining the board, the team now has an unrivalled level of experience and is well-placed to deliver its investment strategy, further expanding the business and consolidating its market-leading position in a continually evolving sector.”

Mark Kerr, director and head of Scotland at LDC, said: “As a firm we’re committed to backing Scottish businesses, supporting the country’s leading management teams in achieving their growth ambitions, and this deal demonstrates our intent to identify and support those hidden gems across the central belt and further afield.”

Notes to Editors

  1. LDC is the private equity arm of Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority.  
  2. LDC backs ambitious management teams from UK-based medium sized companies seeking up to £100m of investment to fund management buyouts or development capital transactions.
  3. LDC invests in a broad range of sectors and has particular experience in Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure, Support Services, Construction & Property and Financial Services.
  4. LDC has a UK regional network with locations in Aberdeen, Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Newcastle, London, Manchester, Nottingham and Reading.