Marlows chairman Philip Underwood has said that the acquisition of the company’s timber engineering business by Howarth Timber Group Ltd is a good result for the two companies.
The Marlows operation was sold by administrative receivers Pricewaterhouse Coopers for an undisclosed sum.
Further details of the receivership on September 30 were not available at the time of going to press, but it was confirmed that the Marlows business had been sold immediately. And Stephen Oldfield of PricewaterhouseCoopers said the move will save around 200 jobs.
“This is a particularly pleasing deal to conclude as Marlows has significant contracts with major national housebuilders, which could have come unstuck had the sale not been concluded,” he said.
After the announcement of the sale Mr Underwood said: “I know Howarth and am delighted they have been successful in their negotiations to acquire our timber engineering business as part of their planned expansion into the south-east. I feel it is a good result for both of us and there will be a good future for our people here.”
The Howarth Timber Group is one of the largest privately owned timber companies in the UK, with net assets of £25m and an annual turnover, in 2003, of £91m.
Marlows, whose sales portfolio currently shows £5-6m truss business and £4-5m timber frame business, will be a wholly owned subsidiary of Howarth Timber Group Ltd and will trade under the name of Marlows Timber Engineering Ltd.
Howarth Timber’s engineering division in the north is of a similar size to Marlows but Howarth intends to develop its new acquisition.
Marlows recently installed a timber frame line at its Bury St Edmunds site and Howarth plans to bring this up to its £7m capacity. And as the business sits on 19 acres, Howarth sees significant opportunities for future expansion.
Marlows DIY and Garden Centre Ltd, based on an adjacent property, is unaffected by the sale.
