In an all Ellon deal, Scotia Homes has acquired timber kit manufacturer Caledonia Homes.
Scotia is majority owned by Camlin Group, a joint venture between James Keiller owner Bruce Linton and and Inverness Caledonian Thistle FC director David Cameron, while Caledonia has been owned by Stuart Sutherland since 2004.
The Press & Journal reported that Sutherland will stay on to see through current contracts, before taking an early retirement.
Caledonia will continue to operate as a separate subsidiary under the same branding, with all 19 employees retained as part of the wider group.
Scotia has also signed a new 15-year lease of Caledonia’s premises in Ellon, with a commitment made to invest in increasing manufacturing capacity at the site.
Gary Gerrard, chair at Scotia, said: “With the huge cost inflation that we have experienced during the past year and material supply shortages we have seen across the construction industry, it became apparent to our board that we needed to take more control of our supply chain.
“Timber kits are a key component of our housebuilding operations and we identified this excellent acquisition opportunity right on our doorstep.”
He added that Caledonia provides in-house manufacturing capability for timber kits, more skilled labour and support for the company's sustainability plans.
Sutherland commented: “I had taken the decision to retire earlier this year before receiving an unsolicited approach from Scotia.
“After several meetings, I became comfortable they were a perfect fit for my business, and also offered continuation of employment for my employees and sub-contractors.”
Scotia builds about 200 new homes each year across Aberdeenshire and employs more than 200 people.
During the year to the end of June 2021, the business reported turnover of £33m, down slightly from £37m during the previous 14-month accounting period - although the latest figure reflected an underlying increase of 4% on an annualised basis.
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