Management Buy Out for Glasgow Timber Firm
24 July 2017
One of Glasgow’s most established family-run timber and builders’ merchants has announced the completion of a management buy-out (MBO).
Kelvin Timber, which has two branches in the West of Scotland - one in Milngavie and another in Hamilton – has been supplying timber, decking and building goods to the construction industry since 1970. The business was set up by brothers Frank and Vincent McHugh.
With assistance from Scottish accountancy firm, French Duncan, Kelvin Timber has officially undergone a MBO – the new owners are Frank’s son, Richard McHugh, who has been involved in the business since the age of 15, taking on the role of director in 2011, and the company’s existing managing director Mark Maginnis, who has worked for Kelvin Timber since 1994.
Kelvin Timber’s director, Richard McHugh said:
“Kelvin Timber is an established business which continues to go from strength to strength. This MBO is the start of an exciting new era for the company, and while we do not intend to make significant changes, we have identified subtle modifications with the aim of facilitating growth and driving performance.
“French Duncan have been a fantastic support to us throughout this process and the team has been key to the success of this transfer. We look forward to continuing our work with French Duncan over the coming months and to the start of our exciting new business venture.”
French Duncan, which has five offices across Scotland and over 200 members of staff, provided support to the team through MBO deal structuring, business planning, fundraising and tax advice.
Iain Walker, Director of Corporate Advisory at French Duncan said:
“Kelvin Timber is a long established and successful business offering a wide range of construction products and other ancillary items. It is evident that the company has an established customer base, a strong financial performance and is highly regarded amongst its customers and with the wider building trade.
“The MBO team has been with the business since the mid-1990s and have significant expertise in the industry and with the company’s clients which puts them in a strong position to continue to build and develop on its performance. It has been a pleasure to work with the team and we look forward to seeing their success over the coming months.”
Shawbrook Bank provided funding to the new team and Macdonald Henderson acted as legal adviser.