Howarth bucks construction market with US acquisition

HOWARTH Timber Group, the UK’s largest privately owned timber company, has agreed to acquire Boise Building Products from US group Boise Cascade.

The deal, for an undisclosed sum, sees Howarth, which is headquartered in Pontefract and has turnover of £160m, acquire the business which distributes in the UK via Crown Timber.

Its engineered products division, which has a strong reputation in trussed rafters, timber frame and beam has agreed to acquire the company from Idaho-based Boise Cascade, one of the world’s largest providers of engineered wood products.

Last month Howarth agreed to distribute Boise products as part of its engineered products range.

Howarth, which has 25 timber and builders’ merchant branches across the country, is a major manufacturer of high performance softwood windows and door sets.

Howarth acquired the business of Bradford based J Blands & Co Timber Merchants in December 2007 from the Timbnet Group and plans to make major investment in the site.

The Boise Building Products business is based in Witney in Oxfordshire and an authorised dealer of Boise engineered wood products comprising joists and complementary laminated veneer lumber and will be integrated into Howarth Timber Engineering.

Howarth Timber Engineering was established in Huddersfield in 1972 and provides more than 250,000 trusses for around 12,500 houses every year.

Howarth Timber Engineering’s managing director Roger Smith commented: “We announced our commitment to the Boise brand in June and this planned acquisition underlines our determination to develop this sector of our business.”

Lester Wilson and Martin Smith, corporate finance partners at the Leeds office of Watson Burton advised Howarth on the acquisition.

Mr Wilson commented: “At such a challenging time in the construction industry, and housing in particular, it’s encouraging that Howarth has taken the bold step to make this acquisition and enhance its product range.”

Jeremy Gledhill, director in the Leeds audit practice of accountants KPMG carried out financial and tax due diligence work on behalf of Howarth.

He said: “This is a strategically important acquisition by Howarth as it gives them access to a range of complementary products for the housebuilding market.

“Howarth is looking at the medium to long-term and is prepared to invest in the future.”

Howarth Timber Group, which employs more than 1,000 staff, saw pre-tax profits increase by £3.36m to £4.77m for the year to March 31, 2007, on turnover of £131.7m. Turnover was up 12% from £117.1m the previous year.

The company saw operating profit increase from £2.07m to £5.37m thanks to positive performances at a number of its subsidiaries.

The business originally began trading in the 19th century as Hudson & Co, but was renamed Howarth Timber Group in 1974.

The family-owned company is run by chairman Andrew Howarth and his brother Nick who is chief executive.

Through its merchant branches under its Howarth Timber & Building Supplies division, the company has facilities including specialist timber treatment and milling and machining, providing a service to professional tradesmen, construction companies and self-builders.

The group also has operations in locations including Scunthorpe and Bury-St-Edmunds in Suffolk.