Under the agreement - which will benefit all four JDS Group companies (James Donaldson Timber Ltd; Donaldson Timber Engineering Ltd; MGM Timber (Scotland) Ltd; and James Donaldson Insulation Ltd) - RBS will provide a debt structure to support the existing operating, capital expenditure requirements and growth plans of the Group with a mix of term, capex revolving credit and working capital facilities.

The Fife-headquartered processor, manufacturer and distributor of timber and engineered timber products has been involved in the industry for over 150 years. Currently chaired by the fifth generation of the Donaldson family, the Group employs more than 650 staff across 26 business premises across the UK. The Group supplies the national housebuilding and wider commercial and industrial construction sectors.

Commenting on the Group’s choice of RBS as its new strategic lending partner, Andy Kilgour, regional director, RBS Corporate, Edinburgh, said: “A family business with a long and proud history, James Donaldson & Sons remains very focused on its future with ambitious growth plans.

“We are delighted to be working closely with the team as they embark on the next chapter of the company’s history and look forward to providing our on-going support for the journey ahead.”

HBJ Gateley advised James Donaldson & Sons Limited in relation to the negotiation of the funding package from RBS.

Euan Cluness, partner with HBJ Gateley, said: “The move to RBS as funder was a significant transaction for James Donaldson & Sons Limited and will provide them with a fantastic platform to fund future expansion.

“It was of key importance to the Donaldson Group that the transfer was undertaken on time and with the minimum of disruption to their business and this was achieved by the pragmatic and commercial approach taken by all parties.”