As timber is widely used in construction and furniture and the two industries are growing at a steady state, there has been a stable volume growth in the use of timber products in the UK since 2015. The structural softwood demand continues to grow driven by the construction sector experiencing steady growth in the past decade, with a 70:30 split between new build and RMI (renovation, maintenance and improvement). At the same time, the UK wooden furniture market has been growing at approximately 3% CAGR over the past decade which has led to the growth of hardwood and fiberboard panel products.
CTH Group has a proven business model and operates in the most attractive segment (Timber) of the construction sector in the UK as it is considered one of the most environmentally friendly building materials. Moreover, it generates material revenues from manufacturing and distributing EWPs which use little wood and primarily offcuts, sawdust, and other derivative wood products to create wood panels and boards.
Templewater’s investment will facilitate the ownership-management transition for the former six shareholders of CTH Group under the guidance of newly appointed group chief executive officer, Nick Cullen.
Templewater, together with Rubicon Partners and the management team will closely work together to unlock inherent values through operational improvement and removing complexity. While taking advantage of the market opportunities, the significant potential to grow the group by investing in both the distribution and manufacturing sides of the business, and the increasing appeal of timber products as a sustainable material in the UK residential and commercial construction market.
