ONE of the leading timber merchants in North Yorkshire and the North East has been acquired in a deal brokered by one of the top financial advisers in the region.

Angus Allan, partner in corporate finance at Clive Owen LLP, brokered the deal between Cairngorm Capital Partners 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 more than £50m and employing more than 360 people.

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

It is the second deal Mr 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 acquisition transactions completed in 2017.

He said: "I have worked with the team from NYTimber for more than 16 years on a number of transactions including the original management buy-out in 2004.

"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."

Established in 1979, NYTimber has a manufacturing and distribution centre in Brompton-on-Swale, near Richmond, and retail outlets in North Shields, Sunderland, Middlesbrough, Darlington, Richmond, Northallerton and Ripon. Its Northallerton headquarters also houses design capabilities. Last year, it had revenues of £18m and employed more than 200 staff.

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."

Mr Kershaw added: "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.”

Thornbridge Sawmills was established in 1992. A direct importer of timber and sheet materials, it has a combined mill and distribution hub in Grangemouth, eight regional branches across Scotland and employs 159 staff.