Finnforest UK Ltd is buying Montague L Meyer Ltd‘s (MLM) softwood business, it was confirmed this week.
After several months of trade rumours that the two com-panies were discussing a deal (TTJ October 6, 2001), a preliminary agreement was reached on March 15, with staff at MLM being informed this week.
In a joint announcement to the press, the companies said the sale, subject to legal documentation being finalised, would be completed towards the end of April.
Finnforest will acquire MLM’s softwood business at Barking, Southampton, Newport, Hull and Widnes. This includes four sawmills with a capacity of more than 160,000m³ per year, which are primarily devoted to production of the Millcraft and Blackmur ranges comprising more than 300 items of machined softwood.
In an announcement to staff, Colin Webb, chief executive of MLM, said the sale would enable the company to concentrate on its panel business and consolidate its position as a ‘leading sheet distributor in the country’.
He said the panel business would continue to trade as normal from Barking, Southampton and Newport but it would almost certainly be necessary to relocate the Widnes panel and laminate flooring business to another site.
Birmingham, Leeds, Grangemouth and Newcastle are panel product operations only and are not affected.
Finnforest has declined to make a statement yet as it says details still need to be sorted out.
The sale comes four years after a management buyout at MLM backed by venture capitalists Alchemy.
