Baillie AHI acquisition creates new force in US hardwood

Baillie’s own current production figures have not been made public, but it was already acknowledged among the leading players in the industry and AHI brings it a further 100 million bd ft of capacity.

The Baillie operation comprises six concentration yards and kilning facilities and three mills, while AHI has 10 mills, plus kilning. Their combined workforce is around 1000.

AHI was sold by private equity investment operation HIG Capital. The latter built up the business through a range of acquisitions, buying Augusta Lumber in 2006, followed by Blue Triangle Hardwoods and Graham Lumber. AHI still sells under the brands of its various component businesses, supplying a wide range of species as lumber. The Augusta brand additionally covers hardwood flooring.

Baillie said that following the acquisition it and AHI would “continue to operate as separate companies and brands” and for customers worldwide it will be business as usual.

“They will retain existing hardwood lumber relationships within each respective company,” said a company spokesperson.

AHI chief executive John O’Dea said the business had developed dramatically under HIG’s ownership.

“It’s support has helped AHI more than double revenues, upgrade equipment, and establish [itself] as a leading exporter of US hardwoods,” he said.

Baillie said that the outlook was “strong for both companies as demand for North American hardwood lumber continues to rise in many regions in the world”.

But in his latest blog on the Baillie Lumber website, president Jeff Meyer said that, after five tough years, the US industry should not be “lulled to sleep” by market turnaround.

“We need to keep investing and pushing for the half percent efficiency increase, as the current runaway market will end sooner or later, and [this] will give us a cost advantage when things turn back to normal.”