Management buyout for Pinewood Structures Limited
It is announced today, 15th January 2007, that leading timber frame
supplier Pinewood Structures Limited has been acquired by its management
through a fully funded, venture capitalist-backed management buyout (MBO).
Pinewood Structures Limited’s current managing director, Geoff
Arnold, led the buyout which was completed on 20th December 2006.
Venture capitalist Matrix Private Equity Partners LLP has backed the
buyout supported by senior debt and working capital from Bank of Ireland
with Baker Tilly acting as business advisers to Pinewood Structures’ management,
led by partner Sean McLaughlin.
Jonathan Gregory led the deal for Matrix and said: “Matrix was
attracted to Pinewood Structures for two reasons. The business is a highly
experienced supply chain manager in this segment of the UK construction
market. Matrix believes that sophisticated UK producers of bulky products
with efficient assembly and flexible call off facilities will continue
to enjoy competitive advantage over overseas manufacturers.”
Pinewood Structures was established in 1981 and is one of the largest
manufacturers of timber frame structures in the UK. The transaction represents
an exit for the founders, chairman Terry Emery and technical director
Tony D’Alton, who with the non-executive investors have fully supported
the MBO as the most effective way of securing the company’s future.
The non executive shareholders have re-invested in the new business demonstrating
their confidence in the business and sector.
Managing Director Geoff Arnold said: “We are looking forward to
a very exciting period. At a time when environmental performance issues
are at the fore, timber frame construction is fast becoming the first
choice for many in the construction industry. The MBO will ensure Pinewood
Structures remains one of the top timber frame suppliers in the UK by
providing strong management and financial foundations to allow us to
capitalise on the continued growth in this sector. There is also great
potential for the company to expand both organically and through acquisition.”
Pinewood Structures’ customers include major contractors and housing
developers such as George Wimpey, St James, John Laing Partnership and
Persimmon who have all pledged their support for the MBO. Colin
Marshall commercial director of George Wimpey North Thames said: “It
is vital for us to provide our customers with a first class product through
a reliable and financially secure supply chain. We actively promote the
use of modern methods of construction as a way of ensuring fast and accurate
build programmes while also recognising the huge environmental benefits
of using timber frame construction. Pinewood Structures has been very
successful in helping us to achieve our goals in these areas for the
last 15 years. We wish the business the very best of luck and look forward
to continuing our strong relationship with Pinewood Structures in the
future.”
Geoff Arnold says the changes will have a positive impact on customers: “They
will continue to receive the high level of support that they have come
to expect from Pinewood Structures. They can rest assured that the management
team is committed to being at the forefront of the timber frame industry
ensuring that our customers benefit from technological developments in
the sector.”
Pinewood Structures’ suppliers also support the MBO. Rod Allan,
UK Managing Director of engineered wood provider Finnforest said: “We
have been working with Pinewood Structures since 2002 and will watch
their development with great interest over the coming years. Our
sector is seeing a period of growth and our relationships with strong
clients like Pinewood Structures are helping us ensure success for all.”
Pinewood Structures is currently working on The SmartLIFE Housing Project
which will demonstrate how modern methods of construction can be used
to improve construction efficiency and help alleviate housing shortages. Around
100 houses will be built at three sites in Cambridgeshire. 75% of the
houses will be built using three modern methods of construction, including
the Pinewood Structures timber frame system and will be compared and
monitored against the remaining homes built using the traditional ‘brick
and block’ method.
Pinewood Structures, working for George Wimpey, has also recently completed
a landmark development in the heart of Cambridge to provide 183 energy-efficient
homes for both the private and social housing sectors.
Pinewood Structures, The Station, Gamlingay,
Sandy,
Bedfordshire SG19 3HB
Tel 01767 651218 | Fax 01767 651928
mail@pinewood-structures.co.uk
