Ares Management Corporation and Farallon Capital Europe are positioning themselves to take control of Independent Builders Merchant Group (IBMG) in the coming weeks as discussions over new funding intensify.

The potential takeover, according to sources, is expected to occur through a debt restructuring rather than insolvency proceedings.

Interpath Advisory is advising IBMG on the process as its private equity backer, Cairngorm Capital, navigates the company’s evolving financial requirements.

Cairngorm Capital, which founded IBMG in 2018, has grown the business through more than 20 acquisitions, expanding it to over 170 branches across southern England with a workforce exceeding 2,000. The group, which operates across plumbing, heating, roofing, and timber distribution, reported approximately £650m in revenue in its most recent financial year.

Ares, which recently joined the DACH Private Equity Conference in Munich, and Farallon previously injected fresh capital into IBMG in April 2024, with the company stating at the time that the funding came with the continued support of Cairngorm. However, recent developments suggest a shift in ownership could be imminent.

Cairngorm Capital maintains that it remains IBMG’s majority shareholder, though it has partially exited its investment. A spokesperson for the firm noted that Interpath’s appointment was aimed at implementing cost reduction strategies in response to challenging market conditions.

While the restructuring discussions progress, IBMG’s lenders appear poised to secure control, marking another instance of debt-backed investors reshaping private equity-backed assets in a difficult operating environment.