Cairngorm Capital Case Studies

National Timber Group case study

In November 2017 Cairngorm Capital acquired Thornbridge, a leading Scottish timber merchant.  Three further proprietary investments over the following 12 months have created the largest independent added value timber distribution and processing group in the UK with full nationwide coverage, led by a management team with deep industry expertise.  On completion of the fourth acquisition, Arnold Laver in November 2018, a new umbrella brand for the group was created, National Timber Group. With extensive warehousing, processing and distribution capabilities the Group can provide customers across the UK with a full range of the highest quality timber, panel, decorative surfaces and engineered wood products supported by comprehensive timber knowledge and expertise. In 2018, the Group has a combined turnover approaching £250million, over 1300 employees and 52 processing and distribution sites from the North of Scotland to London and the South West.

Acquisition of Thornbridge – November 2017

Group: 8 branches; 1 processing and distribution hub; c.£35m revenues; 160 employees

Acquisition

Thornbridge (8 branches, 1 hub, 160 employees)

  • Established in 1992, Thornbridge is a leading Scottish independent timber merchant selling to joiners, builders, regional housebuilders and contractors
  • Processing and distribution hub in Grangemouth in support of branch network
  • FY17 revenues of c.£35m
  • Reputation for quality of timber, sheet and joinery products and the highest levels of customer service provided by an experienced and committed workforce

Location

Strategy

  • Sector consolidation and expanding geographic reach
  • Organic growth through new branch openings
  • Investing in manufacturing capabilities for value-added products such as timber doorsets
  • Building partnerships with key suppliers to expand product offering
  • Cairngorm Capital Operating Partners Jon Gatfield and John Declerck appointed as Interim Managing Director and Non-Executive Director respectively, bringing operational expertise and sector insight

Acquisition of North Yorkshire Timber – February 2018

Group: 15 branches; 2 manufacturing and distribution hubs; £50m+ revenues; 360 employees

Acquisition

North Yorkshire Timber (7 branches, 1 hub, 200 employees):

  • Established in 1979, NYT is a leading independent timber merchant in North Yorkshire and the North East of England
  • Specialist roof solutions division which designs and fabricates roof trusses, spandrel panels and the industry-leading NYTROOF insulated roof cassette system
  • FY17 revenues of c.£18m
  • 120,000ft2 manufacturing and distribution centre in Brompton-on-Swale
  • Commitment to outstanding product quality and customer service

Location

Strategy

  • Expanding footprint into the North of England
  • Complementary value-added products enhance cross-selling opportunities with large customers
  • Supply chain collaboration to provide customers with the highest quality products
  • Cairngorm Capital Operating Partner, Victor Vadaneaux, appointed to lead integration of NYT and Thornbridge

Acquisition of Rembrand – June 2018

Group: 35 branches; 3 manufacturing and distribution hubs; £100m+ revenues; 600+ employees

Acquisition

Rembrand Timber (20 branches, 2 manufacturing sites, 280 employees):

  • Established in 1982, Rembrand is an importer, processor and distributor of timber and panel products in Scotland
  • Complementary branch footprint to Thornbridge
  • Distributes a broad range of roofing, insulation and other building materials though subsidiary companies, Scotia Roofing, Glow Insulation and Site Supplies, and Rembrand Builders Merchant
  • FY17 revenues of c.£50m

Location

Strategy

  • Creation of the largest independent timber distribution company in Scotland and the North of England
  • Expanding manufacturing capability of key products including timber doorsets
  • Developing technology platform across the Group to support manufacturing efficiency and enhance customer service
  • Rob Barclay, previously Managing Director UK, Ireland Middle East at SIG plc, appointed Group CEO to lead integration and scaling of the Group
  • Alex McLeod appointed Managing Director, Scotland to drive growth of the Thornbridge and Rembrand brands

Acquisition of Arnold Laver – November 2018

Group: 48 branches; 4 manufacturing and distribution hubs; £250m revenues; 1300+ employees

Acquisition

Arnold Laver (13 depots, 1 National Production Centre, 750 employees):

  • Established in 1920 and headquartered in Sheffield, Arnold Laver is a venerable brand in the importation, processing and distribution of timber, panel, decorative surfaces and joinery products across the UK
  • Customers include blue chip construction companies and it is a favoured supplier to large-scale infrastructure products such as the 2012 Olympics, Hinkley Point and HS2
  • Laver Timber Systems processes engineered wood products such as roof trusses, spandrel panels and i-joists from three locations in England
  • FY17 revenues of c.£130m

Location

Strategy

  • Creation of the National Timber Group, a UK nationwide processing and distribution network from the North of Scotland to London and the South West
  • Retain trusted customer-facing regional brands, Arnold Laver, North Yorkshire Timber, Rembrand and Thornbridge
  • Investing in processing capabilities in internal, external and fire-rated doors
  • Platform for growth through new branch openings and further acquisitions
  • Training staff and investing in a digital platform to support the provision of great customer service