SWEDEN (News release) -- SCA Wood Supply UK Ltd, which is engaged in the manufacture and distribution of timber and associated products for the Home Improvement and Builders Merchant sector in the United Kingdom, has been divested to BSW Timber Ltd. SCA will keep its organization for the sales of wood products to industrial customers in the UK.
"We have been very pleased with the development of SCA Wood Supply UK, both in the Home Improvement and Builders Merchant sector, but we believe that the business will further develop under the ownership of BSW", says Jerry Larsson, President of SCA Wood.
"We will continue to supply sawn timber to BSW Timber, for sale on the UK market, in addition to our existing UK Industrial Solutions import and distribution operations, which remain part of SCA Wood."
The transaction is expected to reduce the SCA group's net sales by about SEK 1,400m on an annual basis and EBITDA by around SEK 25m on an annual basis. Net Debt has been reduced by around SEK 150m as a result of the transaction.
Approximately 280 SCA employees in the UK will join BSW Timber as part of the transaction.
The BSW Group has four main operating divisions - forestry, sawmilling, timber manufacturing and energy - and encompasses BSW Timber, BSW Energy, Tilhill Forestry, Alvic Plastics and Maelor Forest Nurseries
BSW Timber, with its head office in Earlston Scottish Borders, is the largest sawmilling business in the UK. The company operates at seven sites in the UK - in Fort William, Boat of Garten, Petersmuir, Dalbeattie, Carlisle, Southampton and Newbridge-on-Wye - and one in Riga, Latvia and has capacity to produce over 1.2 million m3 of sawn timber per year.
The units that now join BSW Timber from SCA are the headquarters and distribution centre in Stoke-on-Trent, planing and distribution centre at Welshpool, production and distribution facilities in Melton and distribution centre in Cumbernauld
The combined turnover of the BSW Group will exceed £500m after the completed transaction.