Premier Forest Products acquires sawmilling division of Border Group

Terry Edgell, director and cofounder of Premier, 
Mike Kear senior corporate banking manager for HSBC 
and Dilwyn Howells, director and cofounder of Premier

Britain's timber and panel importer Premier Forest Products has acquired the sawmilling division of Welsh-based Border Group, according to WalesOnline.

Border Group's sawmilling division is made up of two trading companies: GTP Border Forest which sells solid wood products and Border Forest Products which sells the coproduct of production to the biomass industry. The two organisations will come under the ownership of Premier Forest products and will operate as Premier Forest Sawmilling.

Terry Edgell, director and cofounder of Premier, one of the largest companies in Wales and which has its headquarters in Newport, said, “This is a very exciting acquisition for Premier; one that we believe has the potential to have a big impact on our operations. The sawmills current financial performance shows great potential for bringing improved earnings, significantly increasing the volume of material we distribute, improving our environmental credentials and giving us a secure supply source of fencing and pallet wood products, whilst in addition giving control of the quality and product range produced.”

“The Border Group has an excellent reputation and the sawmilling arm is run extremely efficiently, making it a very attractive prospect. We are confident that this acquisition will be beneficial to both companies, ultimately contributing significantly to Premier’s ongoing success.”

HSBC’s Wales Corporate Banking team, based in Cardiff, provided a significant seven-figure funding package to support Premier in the acquisition.

Senior corporate banking manager Mike Kear, who acted on behalf of the bank for the acquisition, said, “Premier Forest Products is a growing business and deals like this one further propel the company. We are pleased to have supported this latest acquisition.”

The Border Group is a large, privately owned group of companies, founded in 1965. Ernie Branfield, the group’s chairman, said, “We decided to sell the sawmill arm of the company to focus on our core businesses.

"We are very proud of the company that we have created and would only have considered selling GTP Border Forest and Border Forest Products to a company that shared our core values – which we believe Premier does. We consider ourselves very lucky to have built a strong business with the staff we have worked with and we are sure that the business will go onto great things under the Premier banner.”

Premier, which employs 214, has a turnover of £76,7 million (Euro 98 million). Through a strategy of organic and acquisition fuelled growth the business is aiming to break through the £100 million (Euro 127,8 million) turnover mark in its next financial year.

Edited: Lee Raath-Brownie
Source: WalesOnline