Development Capital has announced a significant investment in Wogan Build Centre, an established, fast-growing and innovative building material distributor (based in Drogheda County Louth) with annual revenues of €36 million.
It is the 12th investment by Development Capital, bringing the total value of its investments in Irish SMEs so far, to over €90 million. The investment in Wogan Build Centre is the third by the Development Capital Fund II, a €75 million fund, which has now invested over €25 million, approximately one third of its value. The other two companies are Spotlight Oral Care and Nomadic.
Wogan Build Centre has over 40 years of trading experience and a strong reputation for customer service, quality products and specialist knowledge. This investment by Development Capital will support the company’s continued expansion by complementing its consistent organic growth with an acquisition-led strategy, focussed on the addition of complementary businesses to expand Wogan Build Centre’s geographic footprint In Ireland.
Wogan Build Centre provides an extensive range of building and home improvement materials to specialist contractors, general trade and retail customers throughout Leinster. Employing 81 people in Drogheda, the experienced Wogan Build Centre team advises customers in the residential, commercial and industrial sectors on construction projects throughout the region.
Led by brothers Derek and Garrett Wogan, along with an experienced senior management team, the company has achieved significant year-on-year growth tripling its revenues to €36 million with employee numbers increasing to 81 since relocating to a new, dedicated 4,200m2 warehouse and retail showroom at Drogheda’s North Road in 2017. Since then, Wogan Build Centre has expanded its product range and established new specialist divisions in: Plumbing & Renewables; Civils & Drainage and Drylining, Insulation, facades & offsite component supplies.
These businesses along with its General Merchant business have spear-headed Wogan Build Centre’s organic and geographic market penetration in recent years.
As part of the investment, Fran Stafford, Investment Director at Development Capital, will join the Board with Andrew Bourg, Co-Founding Partner of Development Capital, joining as an observer.
Announcing the new investment made by Development Capital Fund II, Andrew Bourg Co-Founding Partner of Development Capital said: “Wogan Build Centre is our 12th investment to date, and 8th outside Dublin. It is a great, fast-growing business led by two charismatic and ambitious leaders in Derek and Garrett, who have a clearly defined growth plan. From our diligence and research, we see strong market trends supporting the organic and acquisition growth plan including continuing demand for construction and renovation projects as well as a highly fragmented building merchant market, with the majority, over 80%, being independent stores.”
He added: “The organic and acquisitive growth plan is exactly the type of plan that Development Capital II was set up to support and accelerate. We are delighted to partner with Garrett, Derek and the wider Wogan Build Centre management team. We look forward to supporting their plans to further expand the business.”
Derek Wogan, Managing Director Wogan Build Centre said: “This investment by Development Capital is an important milestone for us as it enables us to take the development of the business to another level through acquisitions, following significant organic growth in recent years. We are thrilled to be working with a team that supports SMEs like us with both capital and expertise and we welcome Fran to our Board.”
Garrett Wogan, Commercial Director, Wogan Build Centre said: “The diligence, professionalism, and work ethic of our team, together with an in-depth understanding of contractor needs and strong supply partnerships are at the core of our service offering. The nature and speed of change in construction means that our specialist divisions have to be at the cutting edge of MMC (modern methods of construction), renewable technologies and legislative changes. We, together with Development Capital are determined to set the industry standard in this regard.”
Development Capital’s investment model is based on backing SME management teams by providing them with both the funding and experience to unlock and accelerate their growth potential.
