TKC, one of the KBB industry’s leading distributors of kitchen and bedroom doors, accessories and components, has announced that it has completed a management buyout of the company to NorthEdge Capital.
TKC, which was founded in 1989 when MD Tom Kelly began selling edging tape and MDF profiles from his garage in Hyde, has witnessed continual growth over the last 26 years, with turnover reaching £19m in the year to September 2015. The company currently employs 128 staff and operates out of 85,000 square-foot, purpose-built premises in Denton. Over the years the business has established a strong reputation for providing kitchen retailers, manufacturers and local installers with a wide range of contemporary, classic and traditional doors and components, all of which are available at a competitive price.
NorthEdge Capital, a private equity firm focused on investing in businesses in the North of England, supported the management buyout of the company and has acquired a majority stake in the business. The buyout sees TKC’s incumbent management team, which comprises Chris Hazelhurst (Commercial Director), Paul Arrowsmith (Finance Director), Dave Grayson (Operations Director) and Brian Wade (Supply Chain Director), remaining in place. TKC founder, Tom Kelly, and Director, Hayley Kelly, will exit as part of the deal.
Commenting on the buyout, Tom Kelly said, “During my 26 years at the helm of TKC I have forged some fantastic contacts and made some great friends within the KBB industry. I have thoroughly enjoyed building and running the business but I feel the time is right to bow out and I am confident that private equity is the best route for the company to support its continued expansion. The market is buoyant at present, and the business will benefit from NorthEdge’s investment, which will enable the team to maximise growth. With the support of NorthEdge and the top quality management team, I am confident that TKC will continue to go from strength to strength.”
Speaking on behalf of TKC’s management team, Commercial Director, Chris Hazelhurst, adds, “The buyout marks the start of a new and exciting chapter for TKC. I personally have worked at TKC for over 25 years and have watched the company thrive and grow into the great business it is today. We have an exceptionally strong set of people here at TKC and it is the combined team’s hard work, dedication and determination that have enabled us to reach our current position. We are all excited about the future and looking forward to taking TKC to the next level, whilst ensuring we retain the same customer-focused ethos with which TKC has become synonymous.”
NorthEdge Partner, Ray Stenton, adds, “What attracted us to TKC was the team’s track record of delivering growth and the opportunities in the market. We have experience in the sector through our investment in Solidor and can see the huge potential for the business. The management team has an ambitious strategy and we are all very excited about TKC’s next phase of growth.”
NorthEdge has made 13 investments from its maiden fund, which closed at £225m in March 2013, representing over £180m of investment in support of Northern businesses in less than three years.