Timber group consolidates European lead with Huntingdon acquisition
The Scott Timber Group has taken a significant step towards achieving its target turnover of £150 million with the announcement of the biggest deal in the company’s history.
The acquisition of Crofton Pallets in Huntingdon now gives the group detailed coverage of the UK and further underlines its position as Europe’s and one of the world’s leading pallet manufacturers.
Through the acquisition Scott Timber has boosted turnover from £57m to over £75m – with its Latvian operation generating a further £20m turnover – while staff numbers have increased from 600 to nearly 700.
Key to the acquisition has been Crofton’s manufacturing sites in east England at Huntingdon, Grimsby and Wisbech.
The sites now ‘complete the map’ for Scott Timber, which has built its manufacturing bases around its customers and can now boast detailed coverage of the UK offering unparalleled levels of speed, efficiency and quality of supply.
The group will also be able to enhance its timber import operation in Riga, Latvia, which will be complemented by a similar operation conducted by Crofton out of Wisbech. This paves the way for the shipment of over 25,000 cubic metres of timber every month.
As one of the UK’s largest pallet manufacturers, Crofton is renowned for its new pallet supply and quality of service. Scott Timber will look to build on this with the support of the Crofton management team, which will remain in place.
Paul Davidson, managing director of Crofton said: "I would like to thank PEM Corporate Finance for all its efforts in helping us put the deal together. It has gone through very smoothly and PEM’s support and insight was valuable at each stage in the process."
Lake Falconer, head of PEM Corporate Finance LLP based in Cambridge commented: "We were delighted to advise Paul Davidson and Paul Watkins on the sale of Crofton to Scott.
"We worked closely with Crofton, Scott and its advisers to ensure that the transaction was concluded speedily with only 10 weeks between reaching heads of terms and legal completion."
Tom Pickthorn and Jonathan Burton of Mills & Reeve provided legal advice to the vendors.