MBO at Paramount

Three leading figures at Gateshead-based Paramount Windows & Conservatories have bought the business in a multi-million pound deal from its two founders; brothers Graham and David Auld.

The new owners company director Alan Oliver and former regional sales managers Carl Birkenshaw and Derek McLaren immediately unveiled ambitious expansion plans which will see them opening further sites across the North-East and recruiting a further 30 staff.

Their optimism contrasts markedly with the recent problems at two other high-profile double-glazing firms – Stockton-based Budget Windows and Tyneside-based Pennine Windows – which both went into administration within the last three weeks with the loss of a total of 200 jobs. Their administrators blamed the credit crunch and a downturn in the housing and home improvement markets for their collapse.

But, by contrast, Paramount founder Graham Auld said: 'Contrary to what others may be saying our sales were up last year.

'We are not noticing a downturn. It is all about having the right product at the right price.'

Carl Birkenshaw (pictured) said: 'At a time when there have been some high profile ‘casualties’ in the industry, we believe the management buy-out process we have been through, should give existing and potential new customers every confidence in the business.

'The company has been under financial and legal scrutiny in the most vigorous and stringent of ways – and then has been scrutinised again.

'What that process has shown is that Paramount is in a very strong trading position.'

Derek McLaren said: 'We believe that we have the right business model for success in this industry, namely that we will concentrate on our strengths which are selling, designing and installing a range of home improvement products from new uPVC windows and doors, to conservatories, orangeries and sunrooms.

'We did manufacture our own products for two years, but then decided we could not compete with the super-fabricators and for more than 16 years have enjoyed an excellent trading partnership with our supplier Sierra Windows.

'By concentrating on sales and marketing of our products rather than manufacturing them, we plan to avoid what has perhaps been the Achilles heel of some of our competitors.'

The company, which now employs 125 staff, was established in 1989 by the Auld brothers with a Mini-van and a set of ladders.

Graham Auld said: 'David and I wanted to plan our exit from the company, and with an excellent management team ready to step into our shoes, now seemed the right time to let them take over.'

The Auld brothers have retained a shareholding in the business, and will stay on with the company as consultants for an unspecified period of time.

The multi-million pound management buyout was completed with advice and assistance of HW Chartered Accountants and Muckle LLP, with funding from the Bank of Scotland and venture capital fund NEL.

Tel: 0191 491 6350