The roles played by International Timber and IDS in supplying imported softwood and Decorative Panels look set to soar in prominence in the near future following Jewson’s completion of the acquisition of Build Center from Wolseley UK.
Though current Build Center supply channels are being maintained while competition approval is sought, Peter Hindle, Jewson managing director, told TTJ that volume softwood supplies are likely to then be channelled through International Timber, which like Jewson is a Saint-Gobain group member and which currently supplies the Jewson network.
Mr Hindle said the takeover of the £316m Build Center business would catapault Jewson from number two in the builders’ merchant market onto level pegging [in turnover] with Travis Perkin’s core builders merchant business.
“We have always taken timber very seriously,” said Mr Hindle. “[after competition clearance] we will look to integrate with the existing International Timber business.”
Mr Hindle said this would be supplemented by an offering of home-grown products from domestic UK mills and a pick-a-pack service for non-standard specifications. Build Center’s current softwood supplier is Finnforest.
International Timber currently has a turnover of about £155m, while sister company IDS has sales of about £110m.
Other International Timber products and services such as specialist hardwood and machining services are also likely to feature in the Build Center offering, but Mr Hindle said it was too early to detail other likely supply changes and that Jewson would examine what worked best for the branches.
He did not see the current Build Center joinery product supply arrangements changing greatly and he said it would be wrong to assume the engineered wood products business would change – Build Center currently supplies Finnjoist I-beams and Jewson supplies James Jones JJI-Joists.
He said the IDS product range is likely to be channelled through Build Center, which does not currently offer decorative panels.
“We are sending out letters to all suppliers today saying arrangements will stay in place, but we will be happy to discuss things. It would be arrogant in this market to assume we will go one way or another.
“But it would also be stupid for us not to factor the benefits of the full supply chain we have in place.”
Mr Hindle expected a competition authority decision on the takeover by February, during which time Jewson would examine the market dynamics of Build Center branches and customer information. The Build Center business will be managed separately until clearance is granted.
Most Build Center branches will be rebranded as Jewson outlets, with some taking the Gibbs & Dandy name, while a “small number” would probably close.
As well as 148 branches, Build Center has 12 specialist timber centres, offering trusses and machining services. It is the fourth largest UK general builders merchant.
