UPDATED: Conservatory Outlet acquires one of its customers in massive deal

The Wakefield-based manufacturer announced the acquisition of Newcastle-based Pennine Home Improvements for an undisclosed sum yesterday.

The deal places two of the North’s leading home improvement businesses, under the same ownership. Pennine Home Improvements will continue to operate as a separate retail business.

Conservatory Outlet manufactures windows, doors and conservatory products from its 60,000 sq ft facility on Thornes Lane Wharf in the city.

It is understood to be in the top two per cent of UK fabricators in terms of its output volume and supplies into a retail network of 24 installation companies that operate across the UK.

The firm, managed by chief executive Greg Kane and managing director Michael Giscombe, will now boast a turnover of £25m following the acquisition, a figure which has increased fivefold in the past seven years.

Mr Kane, said: “We are delighted to announce that Pennine Home Improvements and Conservatory Outlet have joined forces, bringing the manufacturing hub of our business closer to the customer than ever before.

“Pennine has been part of our network of retailers for just over three years, and has experienced an impressive 30 per cent growth in that time, largely due to its highly committed management team and excellent internal processes. I am certain our new vertical partnership will facilitate a level of knowledge-sharing never before seen in this market which will further support the growth and development of both businesses.”

Pennine Home Improvement will continue to do business from its existing showrooms across the North East. Graham Auld, the previous owner and managing director, will exit the business.

Mark Tinnion, its new managing director, said: “We are really excited about joining forces with Conservatory Outlet and the opportunities for growth that it presents. Our customers are at the heart of everything we do, and being closer to the manufacturing process can only enhance that.”

Mark Billington and Matthew Fannon represented Allied Irish Bank (GB) on the deal.

Mr Billington, senior relationship manager said: “The acquisition has great advantages for both parties and forms part of Conservatory Outlet’s impressive strategic growth strategy. We have been delighted to support Conservatory Outlet since 2014 when owners Greg Kane and Michael Giscombe acquired full ownership of the business and we helped to fund the deal.

“They have a very successful and fast growing business and we are pleased to assist a local manufacturer to extend their presence as a market leader within the industry following this latest acquisition.”

Advisers on the deal include international accountancy firm Mazars and legal advisers were Field Fisher to Conservatory Outlet and Addleshaw Goddard to Allied Irish Bank.