The group has hailed the purchase of Crofton Pallets as “the most significant strategic acquisition we have made”. The company’s manufacturing bases in Huntingdon, Grimsby and Wisbech “complete the map” in terms of STG’s UK coverage, it said. Group managing director John Scott added: “The deal gives us an opportunity to roll out our full range of services across a much wider area. This will include a pallet repair service.”
Crofton Pallets also runs a dedicated shipping service out of Wisbech which brings in 8,000m3 of timber per month from Riga. STG’s existing operation in the Latvian capital is responsible for shipping 17,000m3 of timber to the UK each month. The two ventures would be kept separate, said Mr Scott. “The Crofton supply chain works very well and has different suppliers.”
In acquiring Crofton Pallets, STG has boosted its annual turnover figure by some £18m to around £90m. Noting that the group has set a turnover target of £150m by 2009, Mr Scott said: “We are still very confident we can achieve that.” New areas of activity under development at STG include the supply of building timber and pallet wood to other countries including, to date, France and Israel.
Crofton Pallets’ management team will be retained, while the two owners of the Huntingdon-based company will remain on board during a handover period.
