Cairngorm Capital LLP acquires NYTimber

Angus Allan, partner in Corporate Finance at Clive Owen LLP and Nick Kershaw, NY Timber's managing director

Cairngorm Capital LLP acquires NYTimber

Cairngorm Capital has acquired NYTimber as part of its strategy to consolidate the UK timber distribution sector.

NYTimber, which has branches throughout the North East and Yorkshire, will merge into Cairngorm Capital’s existing portfolio company, Thornbridge.

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.

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

The acquisition is Cairngorm Capital’s 12th proprietary transaction since July 2016 and its second in the timber distribution sector, coming soon after the purchase of Thornbridge.

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

Angus Allan, partner in corporate finance at Clive Owen LLP, originated the deal between Cairngorm Capital Partners LLP and NYTimber.

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.”

Other advisers in the deal were BDO (financial and tax), Addleshaw Goddard (legal), CIL (commercial), JLT (insurance) and Ward Hadaway (legal). PNC Business Credit provided bank facilities to support the transaction.