Leading Sheffield-based timber to property firm Arnold Laver has been acquired by its management team with the support of a management buy-in candidate.

The debt finance is being provided by Yorkshire Bank coupled with equity from the management team, which includes the founder’s grandson, Andrew Laver. The deal represents one of the largest management buy-ins seen in the UK this year.

Arnold Laver has two core divisions.  The £100m turnover Timberworld division has grown to become one of the largest and most respected timber merchants in the UK  with 12 branches across the country, stocking a wide range of softwoods, hardwoods, sheet  materials, laminates, joinery products and kitchens for nationwide delivery or Call Collect. In addition, Timber World offers a wide range of ancillary services including machining, panel cutting, timber treatment, CNC Routering and fabrication.

The property division has grown significantly in recent years carrying out a number of high profile developments in Yorkshire.  Further schemes are in place which will see the division continue its expansion over the next few years.

The company was founded by Arnold Laver in 1920 and now employs 800 staff in 16 branches across the country including eight locations in Yorkshire.

The transaction, structured by Deloitte, sees the business returned to family ownership through the Managing Director, Andrew Laver, Finance Director, Mark Bower, and the senior management team who have been joined by Nigel Petrie, the buy in candidate and Non-Executive Director.  The management team have bought Arnold Laver from the family trust whose decision to sell resulted from the business’ pace of change requiring a more streamlined ownership.

Andrew Laver said: “The Arnold Laver Group has been owned by a Family Trust since my Grandfather died in 1971. The main board decided that the best way forward for the Group was for the business to be acquired from the Trust, allowing the Trust to head in one direction whilst leaving the Main Board to take the Group in the direction that it believes is best for the business and its staff.

“The main board has now completed the purchase of the Group from the Trust. The acquisition has been funded by personal monies from the Main Board as well as borrowings from Yorkshire Bank.

“The acquisition will now allow the Group to continue to expand its timber merchanting, leisure and property divisions in the direction and at the pace determined by the Main Board rather than the Trustees. It puts the entire business on firm foundations for the long term.

 “The continued support shown by Yorkshire Bank throughout this complex transaction is immense news for everyone connected with Arnold Laver. 

“We have a great family business, the success of which is built on the efforts of our staff and their commitment to excellence.  This transaction will allow us to provide a solid platform for these efforts and allow the whole company to continue to grow and prosper.  I am very proud that I will be able to lead the business during this exciting stage in its development.”

Mike Selina of Yorkshire Bank, who arranged the bank financing for the deal, said: "Our relationship with the Arnold Laver business goes back some 15 years during which time we have been able to help with their on-going growth and we are now delighted to support Andrew, Mark, Nigel and the team in taking their company to the next stage of its development. 

“This transaction represents a superb opportunity for us to support a business with an excellent brand and market position.  We are looking forward to continuing to work with the management team and helping them deliver an exciting future for their business.  This deal further demonstrates Yorkshire Bank’s commitment to the region, with over £200m provided to support transactions of this type in this year alone."

A corporate finance team from Deloitte led by Maghsoud Einollahi, Paul Trickett and Richard Ibbett, advised the management team and managed the transaction process.