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BSW Timber Acquires Howie Forest Products

BSW Timber Acquires Howie Forest Products

Major deal secures sixth UK operation for UK’s largest sawmill group

BSW Timber, has announced today (Wednesday 18 November) that the company has acquired Howie Forest Products and Howie Group Ltd increasing its strategically located sawn timber capacity to more than one million m3 per annum.

Howie Forest Products, based in Dalbeattie, Kirkcudbrightshire is the largest single-site sawmill company in Great Britain, employing 150 staff. The company has an annual capacity of more than 300,000 m3 of sawn timber and is the UK’s major supplier of “100% FSC Pure” British softwood.

The 56 hectare Howie Forest Products sawmill in Dalbeattie which turns over around £30m was opened by Robin Howie in 1976 and has benefited from significant investment. Robin’s daughter Laura Smith, the Group’s Sales Director is the latest family member to occupy a senior role. Robin Howie is the only member of the existing management team who will step down. The remaining executives join the enlarged BSW Group and continue in their current positions, with the Howie Forest Products brand being retained and the business remaining a distinct entity within the BSW Group.

Headquartered in Earlston, Berwickshire, BSW supplies a full range of complimentary products to the construction, pallet, packaging, fencing, garden and DIY Retail sectors.

The merger of these premier Scottish based sawmilling companies form part of the long-term expansion drive aimed at enhancing the future profitability of the group and security to its customers in both the sawn timber and co-product markets and suppliers.

Tony Hackney, BSW Chief Executive, said: “The Dalbeattie site is an impressive addition to the BSW group of companies. It’s benefited from significant and recent investment in the latest leading edge technology in sawmilling including the UK’s largest Linck and Springer primary production line and new kilning operations.

“Moreover, it is a well established, profitable business which is well managed and deserves its rightful position as GB’s no 1 sawmill. I’m delighted to welcome the team into the BSW organisation where we intend to strengthen our position in the development of the UK timber industry through the synergies of the deal. This deal shows our commitment to continued investment in a sustainable future.”

Laura added: “This is a superb opportunity to build on the firm foundations that Howie’s have created as a family business”.

“We have developed a strong UK market position, one that will now be further strengthened by the merger with BSW. These are challenging times for our industry, and this deal will have nothing but positive impacts for our workers, our customers and our supply chain.”

BSW Timber’s acquisition of Howie Forest Products builds on recent long-term investment aimed at developing a network of state-of-the-art sawmills across the UK. Earlier this year, the company completed the initial development phase of its planned new sawmill in Corpach, Fort William, investing £10 million in site infrastructure including new kilns and preservative treatment tanks. Plans are already underway for phase 2 of the integrated site.

BSW has taken ownership of Howie’s Forest Products on Thursday 12th November 2009.

November 18, 2009

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BSW Timber Ltd, Reg No SC108926 in Scotland, Reg Office East End, Earlston, TD4 6JA