Aberdeen-based housebuilder Stewart Milne Group said it is putting its timber systems business up for sale “to focus on investing in the growth of Stewart Milne Homes across Scotland and North West England.”
The £100 million turnover business employs 400 people.
The group said it is putting Stewart Milne Timber Systems (SMTS) up for sale at a time when the market is set to grow exponentially.
Stewart Milne Timber Systems has a current order book of close to £300 million and has customer relationships with Barratt, Taylor Wimpey and CALA.
Stewart Milne Group CEO Stuart MacGregor said: “To keep pace with demand, it’s clear that further investment in production capacity in both Scotland and England will be required.
“As a privately run, independent company, we need to prioritise where we invest in the future.
“Since reopening last summer, after the initial COVID lockdown, we’ve seen record levels of activity in the UK housing sector.
“The strength of our business with its award-winning developments, new homes range and record sales has enabled us to capitalise on these favourable market conditions and positioned us superbly for future growth …
“We have therefore chosen to divest our successful timber systems business to increase investment in additional sites for Stewart Milne Homes.
“Using our considerable land buying experience to take advantage of the development opportunities, we will invest in land in the short term and concentrate on growing our homes business in the longer term.”
Alex Goodfellow, Stewart Milne Group Managing Director – Strategic Development, who is leading the sale process, said: “With the scale of the opportunity in the growing timber frame market, SMTS presents a highly compelling investment proposition.
“We anticipate attracting a high level of interest from potential buyers who will invest in order to capitalise on that opportunity.”