James Latham buys Irish timber merchant Abbey Woods

James Latham has bought Irish timber merchant Abbey Woods for up to €2.6bn.

The consideration, which will be satisfied from the company's existing resources, comprises an initial payment of €1.825m, with a further payment of €300,000 to €400,000 due for the net assets subject to completion accounts. In addition, an earn-out of up to €400,000 is payable to the vendors over the next two years subject to turnover targets being met.

Founded in 1983, Abbey Woods specialises in the supply of Accoya, hardwood and softwood timber, hardwood decking, composite decking, cladding, worktops and wood components for use in a variety of market segments. It operates from sites in Dublin and Cork.

For the year ended 28 February 2018, the business had turnover of €7.5m and EBITDA of €379,000.

Chairman Nick Latham said: "We are delighted to have acquired Abbey Woods which is our first acquisition outside of the UK. There are strong synergies between the two companies and it complements our existing business in Ireland that is currently serviced from our Leeds depot. I look forward to working with the Abbey Woods team."

At 1540 GMT, the shares were down 1.1% to 717.25p.