Borders-based Oregon Timber Frame Limited has been bought by Barratt Developments for an undisclosed sum.
Oregon is one of the UK’s largest timber frame manufacturers with a turnover of £20 million, and profits of £1.8 million last year.
Based in Selkirk, it operates from its factory there and in Burton upon Trent in Staffordshire, manufacturing more than 2,000 units each year with around 170 employees.
One of Scotland’s leading angel investment groups, Archangels were long-term supporters of the business for over 20 years, until the majority of individual investors exited in May last year.
Mike Rutterford and Barry Sealey, the founders of Archangels, helped Rod Lawson, now the chairman of Oregon Timber Frame, buy the company out of receivership in 1998.
It has become something of a Scottish success story, able to weather the Brexit storms and become part of the UK housing boom.
In 2018 Barratt announced new targets of volume growth of 3-5% over the medium term, supported by a target of building at least 20% of its homes using an element of offsite construction, including timber frame, by 2020.
Oregon, established in 1998, is one of the UK’s largest timber frame manufacturers specialising in the design, manufacture and erection of high quality timber frame structures for the construction industry.
Over the last three years, Barratt has built around 5,500 homes using timber frame construction. It uses timber frame in the majority of residential properties it builds in Scotland and is increasing its use across England and Wales.
Oregon is one of Barratt’s key timber frame suppliers and following the acquisition Oregon will remain based in Selkirk, Scotland where its experienced management team will continue to lead the business, complementing the Barratt operations in Scotland.
The acquisition has no material effect on the Board’s expectations for the financial year.
Steven Boyes, chief operating officer of Barratt Developments PLC, said: “We are delighted to announce that we have successfully acquired Oregon Timber Frame, one of the leading timber frame manufacturers in the UK.
“Barratt is committed to increasing the number of homes we build using offsite construction as part of our overall volume growth aspirations and to mitigate the current skills challenges facing the industry. Oregon is the perfect company to help us do that, with a highly experienced management team, a skilled workforce and a high quality product.”
Lawson said: “We’re very proud of what we have achieved over the last two decades, building a successful company with a fantastic workforce.
“Now we welcome the next chapter with Barratt who are as committed to quality as we are and have exciting plans for the future of both of our businesses.”
