Cairngorm Capital Partners LLP recently announced that it acquired North Yorkshire Timber (NY Timber) and merged the company with its existing portfolio company, Thornbridge. Following the acquisition of Thornbridge in November 2017, the transaction was Cairngorm Capital’s latest step in its strategy to consolidate the United Kingdom (U.K.) value-added timber distribution sector. Altogether, the enlarged group will have 15 branches in the North of England and Scotland, generating revenues of over £50 million (US$69.85 million) and employing more than 360 people.
NY Timber, one of the leading independent timber merchants in North Yorkshire and the North East, offers customers an extensive range of timber, sheet and joinery products. Moreover, the company also boasts a specialist roof solutions division which designs and fabricates roof trusses, spandrel panels, insulated roof cassettes, as well as the industry-leading NYTROOF Rapid Fit System. Headquartered in Northallerton, North Yorkshire, England, it has a dedicated 120,000ft² design, manufacturing and distribution centre in Brompton-on-Swale and is supported by seven branch outlets. NY Timber’s managing director, Nick Kershaw, will continue to lead the NYTimber business and join the Group Board. In 2017, NY Timber had revenues of £18 million (US$25.13 million) and employed more than 200 staff.
This is Cairngorm Capital’s 12th proprietary transaction since July 2016 and it’s second in the timber distribution sector, quickly following the purchase of Thornbridge. This acquisition is highly complementary to the Thornbridge business, offering the strategic opportunity for geographical expansion and product range extension – qualities that Cairngorm Capital is keen to explore in other potential partners as it looks to add other well-run timber businesses to the group.
This transaction was led by Neil McGill, Investment Director and head of Cairngorm Capital’s Edinburgh office.
“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, NY Timber is a very high quality business with a great management team and a shared focus on excellent customer service,” McGill said. “We are delighted to be able to support this proprietary, off-market transaction as the next step in the creation of a leading UK timber distribution company and to welcome Nick Kershaw to the Board of the enlarged Group.”
“We welcome the investment from Cairngorm Capital – this deal will support the growth ambition of NY Timber’s management team,” Nick Kershaw, Managing Director of NY Timber, added. “Combining with Thornbridge is the perfect partnership for two businesses, which share a commitment to innovation and the highest standards of customer service. There are great opportunities across the sector and the alignment of our goals, values and vision, offers significant strategic benefits for both organisations.”
“We are delighted to see such a well-respected company with significant market presence joining the group, bringing together the leading timber merchants in Scotland and the North East of England,” Bruce Muirhead, Managing Director of Thornbridge, continued. “There is a clear fit between the two businesses and the combination creates exciting opportunities. We have much in common in terms of our heritage and commitment to outstanding product quality and customer service. Our product ranges are highly complementary. Together, we will be well equipped to pursue new opportunities for innovation and growth, to the benefit of our customers and employees.”