Forward Glass – committed for the long term
It’s a year since Cornwall Group’s acquisition of Forward Glass. We review the first year and ask if further acquisitors could be on the horizon?
“We have a bit of experience now. We’ve successfully purchased and integrated a number of different processing and merchanting businesses,” explained Mark Mitchell, chairman, the Cornwall Group.
“That’s not to say it’s necessarily always straight forward, and you invariably run into challenges. What was so attractive in this deal, was the cultural fit and that’s been very important in bringing us to where we are today.”
Cornwall Group acquired Birmingham-based Forward Glass in a transaction that completed on 1 December 2023 in the Group’s most substantial deal to date.
This included 100% of the share capital of the toughened glass manufacturer and stock distributor, the Midlands’ largest independent glass business, plus its 100,000ft2 site.
With a turnover in excess of £10m a year and employing more than 100 people, it supplies single toughened, processed glass and stock to the trade.
“I wouldn’t be being truthful if I didn’t say it has been a challenging year,” Mark continues. “The market as a whole has slipped in the wrong direction, which has made things tricky.
“With acquisitions, however, you have to be prepared to commit and take a long-term and I think we’ve done that.
“96% of the team are still with us 12-months on; the senior management team has stayed and a big part of the business has been successfully integrated into the Group.
“That cultural fit and the response from colleagues to a period of significant change has given us the confidence now, 12-months down the line, to make some sizeable investments, which will support us in expanding Forward Glass’ offer and delivering an enhanced service to our customers.”
Delivered as part of a £3m plus investment programme, this includes the installation of new Glaston tempering furnace.
One of three to be installed in different sites within the Group, it gives Cornwall Group around 2% of the UK’s total toughening capacity.
“The installation of the new furnace gives us increased capacity, and most importantly increased quality, while lowering costs,” Mark says.
He continues: “Single toughening has been important to Forward Glass and remains important but we’re also working to expand its offer, including the stock business and to offer some processed products.
“It’s about maintaining market share and and trying to get a better split between merchanting and single toughened.
“It’s a risk to focus on one specific thing. If market conditions are great and you’re very good at it, you can generate a lot of business and control costs.
“If market conditions are more difficult, as they have been and are likely to be for a little while longer, then the flip side of that is that you can be exposed.
“Our approach is to reduce risk, by realigning our offer so that single toughened is around half of what we do, and to broaden our product and service offer to our customers.”
Cornwall Group has a proven track record of acquisitions. Founded in 1978 and restructuring as the Cornwall Group in 2019, it operates across three divisions.
This includes, Cornwall Glass Manufacturing, which focuses on trade supply and Cornwall Glass & Glazing, which is focussed on installations, trade and retail supply.
A third division covers its glass merchanting business, Mackenzie Glass, which was acquired by Cornwall Glass in 2017 from Pilkington/NSG, and now, Forward Glass.
Collectively it operates across 12 sites, employing more than 300 people but with plans to expand its operational capability further, if according to Mark, the right opportunities come along.
“We have already seen consolidation in the last year and I’m sure there is more to come. The market remains over-capacity,” he says.
“We see a lot of our competitors are very acquisitive or racing on and pushing forward growing their groups very quickly.
“We have a different approach. I think sometimes you’ve just got to do it in an organic way not to over commit and to make sure that you’re investing properly in and growing the businesses that you already have – but to be ready if something comes up that’s the right fit.
“This has very much defined our approach with Forward Glass. We’re investing in our core offer, but also diversifying a little to build increased resilience into our business.
“At the same time, we can continue to track the market and remain open minded about future acquisitions.”
