THE SON of one of the founders of Glasgow business Kelvin Timber has turned to challenger bank Shawbrook to finance a management buyout of the firm.
The business, which supplies timber, decking and other building materials to the construction industry and has sites in Hamilton and Milngavie, was founded by brothers Frank and Vincent McHugh in 1970.
Frank’s son Richard McHugh, who has been a director in the firm since 2011, has joined forces with managing director Mark Maginnis to take over the business for an undisclosed sum.
The move was funded by Shawbrook Bank, which specialises in making loans to small and medium-sized businesses that have been unable to obtain finance from the main commercial banks.
Richard McHugh, who first started working at the business at the age of 15, said: “Kelvin Timber is an established business which continues to go from strength to strength.
“This MBO is the start of an exciting new era for the company and while we do not intend to make significant changes we have identified subtle modifications with the aim of facilitating growth and driving performance.”
The buyout deal was put together with the assistance of accountants French Duncan with Macdonald Henderson providing legal advice.
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