Robinson Manufacturing are very proud to have won the Finance Transaction of the Year award at the 2019 Finance Awards in Milton Keynes last night. The award was won for the acquisition led by CEO Simon Kidney in January of the assets of ETFS, National Hickman’s joist manufacturing arm, owned by US firm Masonite.
Simon explained the rationale behind the deal: “Almost entirely complementary to RML’s manufacturing operation, ETFS gave us an immediate and substantial boost in manufacturing capacity available to housebuilders across the West Midlands.”
Despite cultural and legal hurdles inevitable with a transatlantic deal, as well as the complexity of extracting a subsidiary company from Masonite’s UK arm, RML closed the deal in just 10 working days, on 29th January 2019. The deal was essentially self-funding, with the assets-only purchase significantly strengthening RML’s cash position.
“Since the deal went through, the ETFS team have been welcomed into the RML family, strengthening our senior leadership team,” Simon continued. “We are delighted to say we have been able to capitalise on our investment in the additional production capacity to bring in many more truss and joist joint deals so the deal has proven its worth to Robinson Manufacturing many times over.”
The Awards, organised by ICAEW, Robert Walters, RSM and HSBC, are an annual event highlighting outstanding businesses that contribute to the economy and employment in the region.
Doubling the Business Overnight and How That Changes the Future
(by Simon Kidney, CEO)
I wish I knew the answer.
2018 proved to be another interesting year in the world of engineered wood. Anyone who takes the time to read my ramblings will know that my wood knowledge is minimal but spotting opportunities, coupled with understanding how the business world works, is probably more my forte.
Three noticeable changes in the truss and joist world included:
- New owners at Crendons
- Donaldson’s purchasing Cambridge Roof Truss
- Cairngorm Capital taking strategy position in the market place.
As a former banker it’s great to see even more intelligence entering the timber world, coupled with the sector raising its game in terms of customer service, education and valuing its people.
At Robinson Manufacturing we had another busy year with the acquisition of Cheshire Roof Truss. The North West was certainly a destination missing from our armoury and this enabled us to really consider ourselves a national player, taking our factory count to five giving us good scope for future geographic expansion.
And 2019 started with a bang.
The National Hickman brand has been a strong one for many years. As a business, I’ve always admired its brand positioning and its power in the market place to service all the nationals. The opportunity to acquire the ETFS business was to good an opportunity to walk past.
What has struck me about the operation is the tenacity and talent of the staff. It’s common knowledge that they’ve been through the mill a little, but what a team. From the factory floor to the factory managers, and in between, the desire, attitude and drive is first rate. Akin to a pilot light in a boiler just about to be fired up, you can see excitement at the opportunity that lies before them as part of Robinson Manufacturing. While it sounds perverse, you can’t buy that. You can of course teach people to use a saw, but you can’t teach them to want to work as hard as possible and give an extra 10%. You can educate the difference between 245 and 235 joists. But you can’t educate people to have passion for their work.
This is what makes ETFS such a great fit with Robinson Manufacturing. We have all that in abundance already. The team all advocate the 10 things that require zero talent (which you will have all seen on LinkedIn or other platforms).
The great thing about doubling the size of a business overnight is the people challenge. We’ve welcomed another 100 people into our business overnight, yet they feel like they have been with us for decades.
What this does for any business (and I saw this at a larger scale with Lloyds and TSB, LTSB and HBOS etc) is to bring together two brilliant cultures and let you select the greatest things from both to move towards the challenges that lie ahead in the future as an even greater, well-prepared business.
Of course there are system challenges, there are cultural challenges and there is learning everyone’s name but, and it is a big but, if you don’t get the people piece right then the Lord of Flies strategy becomes a very big challenge to overcome!
Strategically, I refer my more geeky readers to Mintzberg: we’ve always used a bit of an emergent strategy. We know where we are going, we know what the journey should look like, but we need to be flexible and adaptive enough to overcome any hurdles that we encounter. Where we spot an opportunity, we make sure we are brave enough to embrace it and bold enough to follow our instincts. The next 24 months is no different. The industry faces similar challenges; raw price variants, house building constantly under the spot light of one reason or another, building material shortages, skill shortages and then there’s that ongoing Brexit debacle (that’s enough of that…). Yet I am still amazed at the tenacity within the business leaders and the many great people that work within our business and within our competitors.
So for us, the future challenges pre ETFS are the same as post. We’re just more prepared as we have doubled our talent pool.
Which pretty much means I don’t always need to know the answer….
Simon Kidney CEO
Ten (Excellent) Things That Require Zero Talent
- Being on time
- Work ethic
- Body language
- Being coachable
- Doing extra
- Being prepared
Robinson Manufacturing Acquires National Hickman’s Joist Manufacturing Business
Having recently announced our intention to invest in a major expansion of iBeam manufacturing capacity in the West Midlands by opening a new factory in Willenhall, we are delighted to confirm that Robinson Manufacturing Ltd (RML) has instead acquired the joist manufacturing business of National Hickman from Hickman Industries Limited.
This major expansion, which includes both the Wolverhampton and Fife factories, takes the number of factories in the Robinson Manufacturing group to seven across the UK and facilitates our commitment to support a variety of regional and national housebuilders who have requested additional supply in these areas.
CEO of Robinson Manufacturing, Simon Kidney, is delighted by the running start the acquisition gives the business: “We have been in personal communication with senior teams within housebuilders of all sizes over the last three months and they are crying out for additional joist capacity across the West Midlands and beyond,” he explained. “Acquiring this joist business allows us to start to meet the scale of demand from day one – as well as making Robinson Manufacturing a truly national business.”
As well as adding substantially to joist manufacturing capacity, the Wolverhampton factory comes with substantial office space, which RML will use to concentrate our floor design into a new centre of excellence, mirroring our highly effective truss design structure in Wellingborough. The successful Robinson Manufacturing customer service model, which has underpinned the company’s significant growth in recent years, will also be applied to housebuilders choosing RML for joist supply.
The reputation of Robinson Manufacturing is built upon the personal commitment of our outstanding people, many of whom have grown with the company since its beginnings as a family business. As we expand further, we continue to invest in local communities allowing us to attract the finest talent in the areas we serve across the country.
This dedication to customer satisfaction, open communication and quality is unrivalled and enables us to supply competitively at every level in the housebuilding sector. Robinson Manufacturing continues to build partnerships with housebuilders from the smallest local operation to the best-known household names through national contracts.
If you would like more information on this exciting acquisition, please contact us.