Shawbrook Bank supports MBO of Hull-based Hawthorn Timber

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Shawbrook Bank has delivered acquisition and working capital finance to Hull-headquartered Hawthorn Timber.

Managing Director Richard Thompson, Sales Director Richard Iversen and Production Director James Stone have completed the management buy-out (MBO), taking on the timber merchant business with backing from European private equity investor, Nimbus.

Richard Thompson, Managing Director, Hawthorn Timber, comments: “This transaction represents the start of an exciting new chapter for Hawthorn. Our success to date has been built on our relentless focus on serving our customers and the investment and partnership with Nimbus will allow us to grow whilst sticking to our core values.”

Founded in 1953 by Dennis and Sheila Stone, sons Trevor and Michael had then led Hawthorn Timber, passing responsibilities to the management team in 2005.

It is now an award-winning business – recently named the Small Timber Trader of the Year at the Timber Trade Journal awards – and employs 120 people, operating from five sites, with headquarters in Hull’s Wyke Street. The company deals predominantly in soft wood-based products and sheet materials, carrying more than 3,000 mouldings with bespoke potential, processing and distributing more than 60,000 sq m annually.

Chris Clegg, Head of Nimbus in the UK comments: “We are well aware of Shawbrook’s strong reputation in the sponsor-backed finance market and have successfully worked with them on another MBO in recent years.

“The Bank understood the potential of this MBO immediately, quickly providing acquisition term debt and working capital facilities, which offered us an outstanding ‘one-bank’ solution to support our investment.

“As a specialist, Shawbrook offered us bespoke structuring and could work to our tight timescales for completion. They met our needs as a sponsor and we very much look forward to working with them in the future.”

Daniel Martin, Senior Director, Shawbrook Bank, concludes: “Hawthorn is an impressive UK business whose customers rely on them to deliver. Nimbus’ and Hawthorn’s new management strategy is clear and there are multiple opportunities available to grow the business through increased volumes and production efficiencies. We are excited by this MBO and look forward to seeing how the business progresses in the coming months and years ahead.”

The business is in new ownership following the buy-out by its long-serving management team, and as it looks to the future, it now closes in on 70 years’ serving the city and beyond.