EGGER Forestry sells Forest Management arm to RTS Ltd

10 September 2019

Wood-based panel manufacturer EGGER UK, which has more than 800 employees, today announced the sale of its forest management arm to Scotland-based RTS Ltd.

The EGGER Forest Management team will move across on 1st October to RTS Ltd, which, with an annual turnover of £12 million, employs 40 people and is headquartered in Crieff, Perthshire. Whilst EGGER UK remains fully committed to its harvesting operation, with its £34m turnover, this sale marks the withdrawal of the company from direct forest management operations, which had been developed by EGGER Forestry over the last six years.

The EGGER UK panelboard business employs 640 people at its particle board factory in Hexham, Northumberland and another 130 people at its Barony plant in Auchinleck, Ayrshire. The remaining employees work for EGGER’s Timberpak subsidiary.

John Paterson, Director of EGGER Forestry, said: “We have taken a strategic decision to sell this specialist part of the EGGER business and focus on our harvesting operation which is a key supplier of roundwood to our production sites at Hexham and Auchinleck.

“We are delighted that RTS Ltd has agreed to buy the forestry management business which includes the management of over 8,000 hectares of privately-owned woodlands. RTS is a firm which has a similar ethos and philosophy regarding forest management, providing the same bespoke professional services to which our clients have been accustomed. These highly-valued and skilled employees will move over to work for RTS Ltd and will continue to provide an uninterrupted, quality management service to their existing clients.”

Norman O'Neill, Managing Director of RTS Ltd, said: “This is an important strategic purchase for RTS and allows us to further extend our forest management service. We already have a strong presence across Scotland, with well-advanced plans for a further office in Inverness.

“This purchase gives us a stronger foothold in South Scotland and the North of England, from which we will seek further expansion of the business. We are especially pleased to welcome this highly experienced team of professional managers to RTS Ltd. They will continue to provide the same high standard of management service to forest-owning clients.”

Simon Hart, Business Development Manager of EGGER Forestry, set up the Forest Management arm when he joined EGGER six years ago, and moves across to RTS Ltd as part of the deal. He said: “I’m looking forward to joining RTS Ltd at this very exciting time for the forestry industry across the UK. With senior politicians now embracing the need to plant more trees I can only see fantastic growth opportunities.”

Egger RTS Sept 2019

Image above (left to right): Simon Hart (currently Business Development Manager of EGGER Forestry who will transfer to RTS); Norman O'Neill (Managing Director, RTS); Harry Wilson (Director, RTS); John Paterson (Director, EGGER Forestry); Alan Robbins (Chairman, RTS); and Ross Kennedy (Director, RTS).

Notes to editors:

EGGER Forest Management is part of EGGER Forestry, which is a wholly owned subsidiary of EGGER UK, which employs more than 800 people in the UK. The company has a 25-year track record in the harvesting and marketing of forest products and providing professional and reliable services to clients. EGGER Forestry brings benefits to clients by improving relationships with growers and strengthening links in the supply chain. The figure quoted (800) for numbers employed in the UK includes workers at Timberpak Ltd, a wholly-owned subsidiary of the company operating at four sites around the UK.

RTS Ltd is based in Crieff, Perthshire. Lead by three co-owning directors, after a Management Buy-Out in 2017, the company currently has offices in Crieff and Aboyne. RTS Forestry provides professional forest management timber harvesting, consultancy and contracting services. The company has a team of skilled foresters with a wide range of experience in woodland management. Clients include private landowners, conservation charities, utility companies and forest investment companies.

For further information, please contact:

David Lee on 07802 206695 or david@publicaffairs.coop
Neil Cuthbert on 07980 543683 or neil@publicaffairs.coop 
Kate Wallace on 07802 271038 or Kate.Wallace@egger.com
Jenny Oliver on 07976 548932 or Jenny.Oliver@egger.com