Conservatory Outlet goes vertical with
£10m-sales retail acquisition
...“still a B2B company” – Kane
11th April 2017

Conservatory Outlet has announced the acquisition of one of its own network of retail partners, Tyneside-based Pennine Home Improvements, in a move that will bring the group’s total turnover to £25million.

The deal gives the fabricator a sizeable inroad to consumer sales but CEO Greg Kane, speaking to The Glazine today, stressed that it “will remain a B2B company with a strong understanding of the retail market” though he did add that similar acquisitions could not be ruled out for the future.

Pennine, with showrooms in Benton, Gosforth Park, Birtley and Ponteland, has seen its sales grow by 30% to around £10million in a little over three years since it joined the network. Conservatory Outlet says the new combined figure represents a five-fold growth for the group in seven years.

Greg Kane said in a statement: “We’re 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.
“I’m 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.”

He also told The Glazine: “COL will remain a B2B company with a strong understanding of the retail market - it’s on the basis that we’ve been able to support our dealer network so strongly throughout our existence. COL and Pennine will run as sister companies, side by side.”

As to the future, he added: “There’s no imminent announcement but there is a possibility that further acquisitions could take place sometime in the future.”

Pennine Home Improvements will continue to operate as a separate retail business. Graham Auld, the previous owner and Managing Director will exit the business. Former Brand Director Mark Tinnion takes over as MD, with a management team which includes Derek McLaren as Sales Director.

A spokesperson for Conservatory Outlet confirmed to The Glazine that Pennine has exclusivity to its trading area within the network so the deal does not conflict with any of the group’s 23 other retail partners around the UK.

Greg said: “The deal can only be of benefit to our wider network of independent retailers, of whom we’re extremely proud and equally as committed to supporting as ever – if they grow, we grow”.

Mark Tinnion added: “We’re 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.”

Funding to support the deal has been structured by Allied Irish Bank (GB).

Pictured, left to right: Derek McLaren, Sales Director of Pennine, Graham Auld, Former Owner/MD of Pennine, Michael Giscombe, MD of Conservatory Outlet Limited and Greg Kane, CEO of Conservatory Outlet Group.