Housebuilder Scotia Homes has taken over timber kit manufacturer Caledonia Homes in order to “to take more control of our supply chain”.
Both firms have their headquarters in Ellon, Aberdeenshire.
Scotia is majority owned by Camlin Group, a joint venture of property entrepreneurs Bruce Linton – the property entrepreneur behind Dundee-based James Keiller Holdings – and Inverness Caledonian Thistle Football Club director David Cameron.
Caledonia has been 100%-owned by Stuart Sutherland since 2004.
Acquired business to keep name
Mr Sutherland, 58, will stay on for a spell to see through current contracts before bowing out as he heads into early retirement.
The value of Scotia’s takeover was undisclosed.
Caledonia, based in Castle Road Industrial Estate, will continue to operate as a separate subsidiary and under the same branding.
The firm’s 19 employees are continuing in their roles as part of the wider group.
Scotia has also signed a new 15-year lease of Caledonia’s business premises in Ellon.
The housebuilder said it was committed to investing in the site to increase manufacturing capacity.
Scotia managing director Martin Bruce said he had known Mr Sutherland for many years and been “hugely impressed” by the quality of Caledonia’s housebuilding and timber kit manufacturing operations.
Mr Bruce added: “Stuart has developed a highly skilled team and we are delighted that all staff members will be retained, with the Caledonia business becoming part of the wider Scotia group. I look forward to welcoming them as part of our team.”
‘Huge’ cost inflation
Scotia chairman Gary Gerrard said: “With the huge cost inflation that we have experienced during the past year and material supply shortages we have seen across the construction industry, it became apparent to our board that we needed to take more control of our supply chain.
“Timber kits are a key component of our housebuilding operations and we identified this excellent acquisition opportunity right on our doorstep.”
Mr Gerrard added: The benefits of acquiring Caledonia are threefold: it provides us with in-house manufacturing capability for our timber kits, alongside our existing suppliers; it provides additional highly skilled teams of office-based and on/off site trades; and it supports our sustainability agenda and forms a key part of our ESG (environment, social and governance) strategy by expanding our local supply chain.
“It is a great news story for Ellon in the current turbulent economic conditions.”
Mr Sutherland said: “Scotia Homes is one of Ellon’s largest employers, with development sites across the north of Scotland.
“I had taken the decision to retire earlier this year before receiving an unsolicited approach from Scotia.
“After several meetings, I became comfortable they were a perfect fit for my business, and also offered continuation of employment for my employees and sub-contractors.”
Scotia has been building homes in the north and north-east of Scotland for more than 30 years.
Its current and future development pipeline includes sites in Aberdeen, Arbroath, Aviemore, Ballater, Blairgowrie, Braemar, Brechin, Croy, Ellon, Forfar, Insch, Inverness, Kincraig, Kintore, Newmachar, Oldmeldrum, Perth, St Andrews and Tarves.
With the huge cost inflation that we have experienced during the past year and material supply shortages we have seen across the construction industry, it became apparent to our board that we needed to take more control of our supply chain.”
Gary Gerrard, chairman, Scotia Homes.
The company builds about 200 new homes annually and employs more than 200 people.
Accounts filed for the year to June 30 2021 showed turnover of £33.16 million.
This was down from about £37m in the previous 14-month accounting period but Scotia said the latest figure reflected an underlying increase of 4% on an annualised basis.
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