Binderholz to acquire BSW from Endless LLP

Binderholz has announced its proposed acquisition of BSW Timber Group (‘BSW’) from Endless LLP (Endless). The deal is subject to normal closing conditions and approval from the Austrian Competition Commission and UK Financial Conduct Authority.                                                                 

BSW is one of the UK’s leading integrated forestry and sawmilling businesses with turnover of over £650 million and 2,000 employees.  Headquartered in Earlston, Scotland, the business comprises five main operating divisions: tree nurseries, forestry management, tree harvesting, sawmilling, and energy.  It operates seven sawmills across the UK and one in Latvia, and has the capacity to produce over 1.2 million cubic metres of sawn timber per year.

Endless acquired BSW in February 2020 and has invested heavily in the business over the last two years, growing turnover by over £300 million and diversifying the business into tree nurseries, timber harvesting, timber processing and distribution. This has been achieved through the aggressive implementation of a long-term investment plan, despite the impact of the pandemic, including  three strategic acquisitions and an intensive capital expenditure program.  

Established in 1950, Binderholz is a family-owned global sawmiller and producer of value-added products including cross laminated timber, gluelam beams, solid wood panels, pressed pallet blocks, wood pellets and briquettes. Operating across Austria, Germany, Finland and the USA. The combined group will have turnover of approximately £2bn.      

Commenting on the transaction, Tony  Hackney, CEO of BSW, said: ”I would like to thank Endless for the support they have given BSW over the last two years. Endless has demonstrated what can be achieved with the right financial partner. They have been unwavering in their desire to invest in the business and I couldn’t have asked for a better partner to deal with the challenges posed by the pandemic.

We are very pleased to be strengthening our position in the value-add timber market by becoming part of the Binderholz family. The opportunity to enhance our supply chain, and additionally widen our product offering is exciting. This represents another major milestone in the growth of BSW and provides our customers with a more robust and broader range of products.”

Reinhard Binder, Chairman of Binderholz, said: ”We are delighted to be welcoming BSW into the Binderholz family. We have been hugely impressed with how the business has developed under Endless’ ownership. The transaction represents a strategically important step for Binderholz into the UK market and will strengthen both BSW and Binderholz capabilities and broaden our product and service offerings to customers”

Aidan Robson, Partner of Endless LLP, said: “We are very proud of what we have achieved with BSW in a relatively short time period and have enjoyed working with the BSW team.  We did not envisage selling BSW before the end of our five-year investment plan. However, Binderholz made clear their ambitions for BSW and they represent a fantastic long-term owner for the business with a strong track record of supporting ongoing growth and development across its group. We wish the whole BSW team all the best for the future”.

Endless LLP and BSW were advised by MCF (Corporate Finance), Walker Morris (Legal), PWC (Financial and Tax), Deloitte (Pensions) and Willis Towers Watson (Insurance). Binderholz were advised by Alvarez and Marsal (Financial, Tax and Pensions), Flick Gocke Schaumberg (Legal) and MacFarlanes (Legal).