DLH Group has bought PW Hardwood LLC, a US-based temperate hardwood company, for an undisclosed sum.
The PW business comes with a turnover of around US$30m and, combined with DLH’s existing operation in Greensboro, brings the company’s US operations to US$65m, according to Stuart Palmer, managing director of Kent-based DLH Timber (UK).
He said the acquisition would enable the company to offer fresh alternatives to its customers in the face of the increasing scarcity of tropical hardwoods, coupled with the environmental issues, political aspects and financial risks associated with some species. PW will form part of DLH’s hardwood division
The acquisition, sealed at the end of February, will bring a significant increase in activity for the US operation which deals in domestic and export sales, and additional opportunities for export sales within the DLH network.
Mr Palmer said: ‘The opportunity to acquire PW Hardwood came at the right time for DLH. The US market weakened throughout 2001 and PW’s previous owners were keen to dispose of PW Hardwood to enable them to concentrate on alternative businesses.’
As a result, said Mr Palmer, the purchase terms suited both parties. DLH acquired a company with ‘a strong brand and reputation and with staff of exceptional experience in temperate hardwood trading’. In addition, kilning facilities were included, adding a further dimension to services provided by DLH in the US.
PW processes the full range of North American species in a variety of sizes, colours and specifications. Its main facility is in Pennsylvania, with another in Vermont, and together they produce 20 million bd ft of kiln dried lumber a year.
