James Donaldson & Sons has acquired the timber frame arm of the Stewart Milne Group for an undisclosed sum.
The deal for Stewart Milne Timber Systems (SMTS) is part of the group's growth strategy to expand its presence within the UK.
The company will join its portfolio of independent brands: MGM Timber, Donaldson Timber Engineering, James Donaldson Insulation, Smith & Frater, Rowan Manufacturing, Nu-Style Products, Kitchens International and Stonecare.
The timber frame arm of the Stewart Milne Group was established in 1975 and has continued to grow and become one of the pioneers in the timber frame technology and manufacturing sector, operating from Aberdeen, Witney and a new facility in Falkirk.
All staff and operations will continue unchanged following the acquisition by the Fife-based group.
Alex Goodfellow, Stewart Milne Group’s managing director for strategic development, will become chief executive for off-site manufacturing at the Donaldson Group.
He will join Rod Allan, SMTS managing director, and the current board of directors, in continuing to drive the business.
Andrew Donaldson, chief executive at the Donaldson Group, said: “This deal secures the future for a leading Scottish-based business, enabling the growth plans for it to reach its full potential, while providing reliability and stability for its existing and new customers.
“This is an exciting move for the Donaldson Group, as we venture into the timber frame market at a time when interest in the material has never been higher.
“The use of timber frames is anticipated to double in the next five years as housebuilders turn to modern methods of construction and renewable sources to achieve crucial net zero carbon targets.”
Stuart MacGregor, chief executive of Stewart Milne Group, said: “This deal represents an exceptional outcome for both parties - the scale of the opportunity in the growing timber frame market and the stellar growth of SMTS presented a highly compelling investment proposition and we are pleased to have found the right buyer who will continue to invest in the business and its people.”
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