Completion of the takeover comes two months after Stewart Milne Neighborhood places it trees frame division up for sale to level of curiosity on home-constructing.
The preserve mark became no longer disclosed.
Donaldson, a sixth-generation family trees merchant with headquarters in Fife, acquires a number one producer of trees frame systems with a £100m turnover (pre Covid), a £300m verbalize e-book and better than 400 workers.
Aberdeen-primarily based entirely mostly Stewart Milne Timber Methods (STMS) claims a 20% UK market fragment. It has three manufacturing vegetation: in Aberdeen, Witney and a brand contemporary facility in Falkirk.
All team and operations will continue unchanged underneath STMS managing director Rod Allan. Alex Goodfellow, Stewart Milne Neighborhood managing director for strategic style, can even switch with the industry to alter into chief executive of Donaldson Off-situation Manufacturing.
SMTS joins the Donaldson Neighborhood portfolio of brands that involves: MGM Timber, Donaldson Timber Engineering, James Donaldson Timber and James Donaldson Insulation – as well to the no longer too long ago added Smith & Frater, Rowan Manufacturing, Kitchens World and Stonecare, all got within the past two years.
Donaldson Neighborhood chief executive Andrew Donaldson said: “This deal secures the future for a number one UK-primarily based entirely mostly industry; enabling the growth plans for it to attain its paunchy capacity, whereas offering reliability and steadiness for its present and contemporary customers. SMTS is a pure match for the Donaldson Neighborhood; it provides a identical family-owned ethos, and has a solid repute and notice epic for funding and innovation. We’re overjoyed to welcome all 411 workers to our family industry and quiz forward to working carefully with Alex and the paunchy crew.”
He added: “Here is an exhilarating tear for the Donaldson Neighborhood, as we endeavor into the trees frame market at a time when passion within the topic cloth has by no arrangement been bigger. The utilization of trees frame is anticipated to double within the next 5 years as housebuilders flip to long-established suggestions of constructing and renewable sources to create wanted compile-zero carbon targets. This acquisition supports the Donaldson Neighborhood’s dedication to sustainability: constructing a sustainable industry and supporting a sustainable trade.”
Alex Goodfellow, the contemporary chief executive of Donaldson Off-situation Manufacturing, said: “We contain secured the exact accomplice who is dedicated to our development system and who will pork up us to create our imaginative and prescient. The Donaldson Neighborhood has a solid repute for partnerships, reliability and integrity and we are clearly aligned each strategically and operationally that can even unbiased most exciting help enhance our market-main space.”
Stewart Milne Neighborhood made a £72m pre-tax loss for the twelve months to 31st October 2020. Chief executive Stuart MacGregor said of the sale: “This deal represents an out of the ordinary rupture consequence for every occasions. The scale of the different within the rising trees frame market and the stellar development of SMTS equipped a highly compelling funding proposition and we are overjoyed to contain stumbled on the upright purchaser who will continue to make investments within the industry and its folks.
“The sale of SMTS will enable Stewart Milne Neighborhood to enhance our funding in our thriving properties industry which has viewed epic levels of gross sales within the final 18 months and, with our differentiated methodology to space-making and contemporary properties vary, is now superbly positioned for future development.
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