Private equity firm Cairngorm Capital has acquired North Yorkshire Timber to merge with its existing portfolio company, Thornbridge, another timber merchant.
The enlarged group will have 15 branches in the North of England and Scotland, generating revenues of over £50 million and employing over 360 people.
North Yorkshire Timber, known as NYTimber, is an independent timber merchant in North Yorkshire and the North East offering an extensive range of timber, sheet and joinery products as well as a specialist roof division.
It is headquartered in Northallerton and has a design, manufacturing and distribution centre in Brompton-on-Swale as well as seven branch outlets.
The business had revenues of £18 million in 2017 and employs over 200 staff. The firm’s managing director, Nick Kershaw, will continue to lead the business and join the Group Board.
The merger of the two businesses will enable geographic and product range expansion and Cairngorm Capital plans to add further timber firms to the group to create a national timber distribution business.
Neil McGill, Investment Director at Cairngorm Capital, 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. 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.”
Nick Kershaw, Managing Director of NYTimber, added, “We welcome the investment from Cairngorm Capital – this deal will support the growth ambition of NY Timber’s management team. 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.”