NYTimber group acquired by top financial adviser

One of the biggest timber merchants in the region has been acquired in a deal brokered by a firm just confirmed as one of the top financial advisers in the region.

Angus Allan, partner in corporate finance at Clive Owen LLP, originated the deal between Cairngorm Capital Partners LLP and NYTimber and provided ongoing financial advice on the transaction.

NYTimber will merge into Cairngorm Capital’s existing portfolio company, Thornbridge, as part of its strategy to consolidate the UK timber distribution sector.

The enlarged group will have 15 branches in the North of England and Scotland, generating revenues of over £50m and employing over 360 people.

NYTimber’s managing director Nick Kershaw will continue to lead the NYTimber business and will join the enlarged group board.

This is the second deal that Angus Allan has completed with Cairngorm Capital and comes as an acquisitions report published by Experian ranks Clive Owen LLP at number two in the region based on the volume of mergers and acquisitions transactions completed in 2017.

Angus said: “It has been such a pleasure to work with Nick Kershaw from NYTimber and the team at Cairngorm Capital.

“I have worked with the team from NYTimber for over 16 years on a number of transactions including the original MBO in 2004. As a longstanding firm of chartered accountants and proactive business advisers, we support businesses across the region helping them achieve their financial goals.

“2018 has already started positively and we look forward to working with even more businesses this year as the North East continues to be an attractive region in which to operate.”

Angus and his team completed a number of significant disposal mandates in 2017, including deals involving private equity firms and multinational PLCs.

Established in 1979, NYTimber has a manufacturing and distribution centre in Brompton-on-Swale, near Richmond, supported by regional retail outlets in the likes of North Shields, Sunderland, Middlesbrough and Northallerton, its headquarters.

In 2017, NYTimber had revenues of £18m and employed over 200 staff.

Neil McGill, investment director and head of Cairngorm Capital’s Edinburgh office, concluded: “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.”

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