Stewart Milne Group has put its timber systems business up for sale in order to further invest in its housebuilding projects across Scotland and north-west England.
The sale of Stewart Milne Timber Systems’ (SMTS) is intended to allow for an increased focus on the growth of the wider Stewart Milne Homes group.
SMTS has experienced “stellar” growth in the last five years, with a current order book of close to £300m.
The firm said: “This growth is attributed to a combination of technical and manufacturing excellence with strong customer relationships with the UK’s leading housebuilders, including Barratt, Taylor Wimpey and Cala.”
The £100m turnover business, which employs 400 people, has about 20% market share, according to the company.
Alex Goodfellow, Stewart Milne Group’s managing director of Strategic Development, who is leading the sale process, said: “With the scale of the opportunity in the growing timber frame market, SMTS presents a highly compelling investment proposition.
“We anticipate attracting a high level of interest from potential buyers who will invest in order to capitalise on that opportunity.”
Stewart Milne has been investing in SMTS’ product and manufacturing innovation and capacity at its factories in Aberdeen and Witney “to keep up with demand”.
The company said increased volumes have led to the creation of a third production facility in central Scotland.
Chief executive Stuart MacGregor said: “To keep pace with demand, it’s clear that further investment in production capacity in both Scotland and England will be required.
“As a privately run, independent company, we need to prioritise where we invest in the future.
“Since reopening last summer, after the initial COVID lockdown, we’ve seen record levels of activity in the UK housing sector.
“The strength of our business with its award-winning developments, new homes range and record sales has enabled us to capitalise on these favourable market conditions and positioned us superbly for future growth.”
MacGregor added: “The buoyancy of the housing market, however, does mean that land prices in Scotland and north west England are increasing rapidly.
“We have therefore chosen to divest our successful timber systems business to increase investment in additional sites for Stewart Milne Homes.
“Using our considerable land buying experience to take advantage of the development opportunities, we will invest in land in the short term and concentrate on growing our homes business in the longer term.”
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