One of Australia’s largest structural timber producers will enter the pallet manufacturing business after Hyne Group announced the acquisition of Melbourne-based Rodpak for an undisclosed sum.
It comes two years after UK-based James Jones and Sons, a leading pallet manufacturer across Europe, acquired a 60% stake in Mayflower Enterprises, the parent company of the Hyne Group, which comprises Australian timber giants Xlam and Hyne Timber.Â
It is the first time Hyne has entered the pallet manufacturing business, and it came after it acquired Rocky Point last year as part of an expansion and growth strategy focused on family-owned companies with shared values.
Hyne Group CEO Jim Bindon announced the deal, which, subject to meeting compliance requirements, will see the transaction finalised on May 1st, significantly continuing a consolidation in timber and forest-products supply chains.Â
Significantly, Hyne is not looking to add capacity to the pallet market; instead, it wants to work with Hyne customers and strategic partners who are either looking to exit or manage its succession planning.
“Rodpak is a highly regarded business with a long history in the manufacture of softwood timber pallets, with quality equipment and technology, and great customer relationships,” Mr Bindon said, adding that “all these factors are very consistent with the core position of the Hyne Group, which has operated in Australia for over 140 years.”
“While it will be business as usual for Rodpak’s brand, staff, suppliers, and customers, being part of the Hyne Group brings the strengths of the international connections with James Jones and Sons Ltd, a leading pallet manufacturer in Europe with sites across the United Kingdom.”
“The broader security of being part of a large timber manufacturing business also brings further certainty for the Rodpak business and its customer base.”
Hyne has been a long-term timber supplier to the pallet industry, which remains a core focus for the sawmilling operations, “continuing supply to these long-term Hyne pallet customers remains essential to the broader Group strategy.”
“This acquisition has no impact on our high-quality, structural framing product range for the construction sector, which remains the main focus of the Hyne Timber business,” Mr Bindon stressed.
Under the terms of the deal, the current owner, Dean Roderick, will remain with the business. Mr Bindon added that Mr Roderick “is well respected in the market and internationally within the pallet sector…Dean has been known to the James Jones & Sons pallet business for some years.”
According to Mr Roderick, the new ownership model was a welcome move for the company. He added that “becoming part of a national and global ownership model is a significant milestone for us as a business, for our team members, customers, and suppliers, and we have been pleased with the process to get to this point.”
“Rodpak is a great business with strong partnerships built over many years. With the local strength and global reach of the Hyne Group, I am very confident the company is moving in a great direction, and I personally look forward to working with the broader Hyne Group team.”
To learn more about Hyne – one of Australia’s most storied timber companies, visit Wood Central’s special feature on 140 years of Hyne Timber, published by Jim Bowden last year – a friend to multiple generations of the Hyne family.
