The deal, completed on December 23 and announced on January 6, is part of Forest Garden’s long-term strategy to strengthen and grow its business through acquisition, with M&M Timber representing a "perfect and complementary" fit to the group.
Forest Garden managing director Guy Grainger told TTJ the acquisition had multiple benefits for both parties, with Forest able to access the landscaping, agricultural and play equipment sectors and M&M’s full product range to have access to the wider market channels serviced by Forest.
He said the close proximity of Forest’s Hartlebury base in Worcestershire, just 12 miles from M&M’s Clows Top sawmills, was a key synergy.
Mr Grainger said the two companies started talking about synergies last summer. "M&M were frustrated at not being able to further develop its landscaping and agricultural markets," he said.
Forest Garden’s financial muscle will lead to direct support and investment for M&M, to strengthen its position in these markets.
It also allows Forest to accelerate its own process of product repatriation, sourcing less product from overseas and using M&M’s nearby production and kiln-drying facilities.
Mr Grainger said imports of decorative trellises and decorative fence panels were becoming more expensive. He said M&M had extensive kiln-drying facilities – something Forest did not have – with the drying facilities able to double its output.
And Forest is also viewing M&M’s Hedeghog timber incising facilities as an asset. Forest Garden sees potential in offering M&M’s agricised (incised and pressure treated posts with a quoted service life of up to 15 years) brand across its multiple channels such as Travis Perkins and other large multiples.
"We can far exceed the reach of M&M because of our scale," said Mr Grainger. "Forest is a high volume manufacturing operation supplying fencing and sheds but we also want to develop high-end low volume products. M&M’s site nearby will help us to do that."
M&M’s manufacturing expertise in timber structures is being viewed as a resource for Forest to tap into.
Mr Grainger said Forest Garden would carry out an operational review of the M&M operation over the coming months, but it is committed to retaining the latter’s production site at Clows Top.
He said it made sense to retain the M&M brand in its key landscaping, agriculture and play equipment sectors.
"Where there is some product cross-over we need to make a call on whether the M&M brand is merged with the Forest brand." He said this was in the retail and garden centre market, but no decisions had yet been taken.
"With the support of Forest we will now be able to invest the time and resources needed to develop our more specialist markets that we have for so long sought to focus on," said M&M Timber managing director Nigel Poyner.
