12th deal in two years
Cairngorm bulks up timber business with Yorkshire deal
Cairngorm Capital Partners has acquired North Yorkshire Timber and is merging the business with its existing portfolio company, Thornbridge.
Following the acquisition of Thornbridge in November, this latest transaction, led by Cairngorm’s Edinburgh office, is the next step in the strategy to consolidate the UK value-added timber distribution sector.
The enlarged group will have 15 branches in the North of England and Scotland, generating revenues of over £50 million and employing more than 360 staff.
North Yorkshire Timber is an independent timber merchant in North Yorkshire and the North East.
Headquartered in Northallerton, it has a 120,000 sq ft design, manufacturing and distribution centre in Brompton-on-Swale and is supported by seven branches.
NYTimber’s managing director, Nick Kershaw, will continue to lead the NYTimber business and join the group board. In 2017, NYTimber had revenues of £18 million and employed over 200 staff.
This is Cairngorm Capital’s 12th proprietary transaction since July 2016 and its second in the timber distribution sector, quickly following the purchase of Thornbridge.
The transaction was led by Neil McGill, investment director and head of Cairngorm Capital’s Edinburgh office, who said: “As investors we are actively engaged in the strategy and operational development of our portfolio companies.
“We have been working hard to find opportunities to scale our timber business rapidly. Like Thornbridge, NYTimber is a very high quality business with a great management team and a shared focus on excellent customer service.”
Thornbridge and Cairngorm Capital were advised on this transaction by BDO, Addleshaw Goddard, CIL, JLT and Clive Owen. NYTimber shareholders were advised by Ward Hadaway. PNC Business Credit provided bank facilities.