Family-owned Fife timber specialist James Donaldson & Sons Group has agreed a £16 million refinancing deal with RBS.
The Markinch-based group is the UK’s leading independent processor, manufacturer and distributor of timber and engineered timber products and has a history stretching back more than 150 years.
Its rebanking relationship with RBS covers strategic funding services across the JDS Group James Donaldson Timber Ltd, Donaldson Timber Engineering Ltd, MGM Timber (Scotland) Ltd, and James Donaldson Insulation Ltd.
RBS will provide a debt structure to support the existing operating, capital expenditure and growth plans of the group with a mix of term, capital expenditure revolving credit and working capital facilities.
Euan Cluness, partner with Donaldson’s advisers HBJ Gateley, said: “The move to RBS as funder was a significant transaction for James Donaldson & Sons.
“It will provide them with a fantastic platform to fund future expansion.
“It was of key importance to the Donaldson Group that the transfer was undertaken on time and with the minimum of disruption to their business. This was achieved by the pragmatic and commercial approach taken by all parties.”
As security for the funding, RBS has a floating charge over all Donaldson’s property, undertakings, assets and rights.
Andy Kilgour, regional director, RBS Corporate, Edinburgh, said: “A family business with a long and proud history, James Donaldson & Sons remains very focused on its future with ambitious growth plans.
“We are delighted to be working closely with the team as they embark on the next chapter of the company’s history and look forward to providing our ongoing support for the journey ahead.”
Scottish law firm Brodies LLP was legal adviser to RBS in the deal.
Chaired by fifth generation family member Neil Donaldson, the Donaldson Group employs more than 650 staff across 26 business premises across the UK.
Last year the group’s turnover was up 11.2% at £117.1m and pre-tax profit was up £300,000 to almost £2.5m.
It supplies the national housebuilding and wider construction sectors.