LAGAN Investments, the investment vehicle formed following the sale of Kevin Lagan’s building materials business to Breedon last year, has paid an undisclosed sum to acquire a majority stake in Frame-Tech Structures Ltd, a manufacturer of timber frame structures based near Huddersfield in West Yorkshire.
Founded in 2008, Frame-Tech has a leading market position in the north of England, manufacturing and installing in excess of 1,000 residential units a year. It employs around 60 people and last year had sales of nearly £13 million.
The acquisition should provide excellent synergies with the Lagan’s FastHouse operation in Limavady, which has grown its market share considerably across Ireland in the last year with a sales pipeline in excess of £20m.
Both companies are well placed to benefit from the UK and Ireland’s increasing demand for new housing stock, notably as developers and contractors move towards using more modern methods of construction including off-site manufacturing.
The UK timber frame market has grown substantially in recent years, and is forecast to grow by 25 per cent to nearly £1 billion by 2022. Timber frame construction now accounts for about 30 per cent of all new build housing units.
Peter Lagan, director of Lagan Investments, said “This acquisition provides us with the opportunity to expand our timber frame representation into the north of England.
“The company has a young, enthusiastic and dynamic management team and we feel confident that we can work together to grow the business further. Given the ever-increasing demand for off-site manufacturing, and the need to address the shortage of homes throughout the UK and Ireland, we intend to collectively grow our market share and consider further acquisition opportunities.”
Jamie Atkinson, managing director of Frame-Tech Structures, added: “This new investment by Lagan will allow us to take the business to the next stage, expanding both our product offering and geographical coverage.
“Having worked closely with Kevin and the Lagan management personnel over the past few months, we're confident our talented teams can work together to deliver value for money solutions for both existing and new customers.”
