Thu, 14 Nov 2024 | MERGER
Two timber groups have joined together to form a £80 million turnover national business and seek out acquisitions.
Summit Timber Group comprises Hull-based Hawthorn Timber which has been supplying high-quality machined and treated softwood, panel products and cladding since 1953 to markets such as holiday homes, modular building manufacturers, timber merchants and DIY outlets. The other company involved in the merger is Cheshire Mouldings, a St Helens-based manufacturer and distributor of mouldings, stair parts, panelling, decking and joinery timbers.
In the year ending December 31, 2023 Hawthorn posted a £42.9 million turnover whilst over the same period Cheshire Mouldings recorded a £37.8 million turnover.
The performances came despite a difficult trading scene due to high inflation, higher interest rates, supply chain disruption and economic uncertainty leading to reduced disposable income. However, both companies stressed the importance of investing in the research and introduction of new products as well as spending more on production capability and IT.
Summit Timber will look to continue growing and supporting its trajectory through organic investment in capacity and processes as well as strategic and focused acquisitions of businesses which align with the core values of the group.
The new group will be led under the chairmanship of Tony Hackney. Day-to-day business of both Cheshire Mouldings and Hawthorn Timber will continue to be overseen by the existing management structure of each company.
International law firm Womble Bond Dickinson advised on the deal with its team being led by partner James Cook.
"Summit Timber marks a landmark moment in the history of two leading players in the sector and by bringing these two companies together under one umbrella, it will unlock new opportunities for both while consolidating their strong position within the market,” Cook said.
Other advisors on the transaction included MCF Corporate Finance, Cortus Advisory, BDO, KPMG, Addleshaw Goddard and Squire Patton Boggs.
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