Completion of Branch Acquisition
01 April 2022
Lords, a leading distributor of building materials in the UK, is pleased to announce that, further to its announcement of 15 February 2022, the Group’s subsidiary, Hevey Building Supplies Limited (‘Hevey’), has acquired a Buildbase branch, from Grafton Merchanting GB Limited previously part of its timber and building materials business (the ‘Acquisition’). The Buildbase branch purchased is a single site located in Sudbury, Suffolk (the ‘Sudbury Branch’).
The Acquisition offers additional expansion for the Sudbury Branch and the wider Lords Merchanting division across product range, acquired customers and digital presence whilst also further enhancing Hevey's growing East of England presence.
The total gross consideration payable of £2.2 million will be met from the Company's existing cash resources. The Sudbury Branch generated revenues of £5.1 million and adjusted EBITDA of £0.5 million in the year to 31 December 2021.
The Acquisition will see all employees of the Sudbury Branch transferred into the employment of the Group.
Shanker Patel, Chief Executive Officer of Lords, said: "The acquisition of one of Grafton Merchanting’s timber and building materials businesses continues the delivery of the Group's M&A strategy set out at IPO, whereby we will look to grow our regional presence through acquiring businesses that are leaders in their local markets. As a result of the acquisition, Hevey Building Supplies will further enhance its growing presence in the East of England.
“We are delighted to welcome our 15 new colleagues to the Group and look forward to integrating them into our strong, family culture, a key cornerstone of our success.”
FOR FURTHER ENQUIRIES:
|Lords Group Trading plc||Via Buchanan|
|Shanker Patel, Chief Executive Officer||Tel: +44 (0) 20 7466 5000|
|Chris Day, Chief Financial Officer|
|Cenkos Securities plc||Tel: +44 (0)20 7397 8900|
|Ben Jeynes / Max Gould / Dan Hodkinson (Corporate Finance)|
|Alex Pollen (Sales)|
|Buchanan Communications||Tel: +44 (0) 20 7466 5000|
|Henry Harrison-Topham / Stephanie Whitmore / Kim Looringh-van Beeck / Kiki Norman||[email protected]|
Notes to editors:
Lords is a specialist distributor of building, plumbing, heating and DIY goods. The Group principally sells to local tradesmen, small to medium sized plumbing and heating merchants, construction companies and retails directly to the general public.
The Group operates through the following two divisions:
- Merchanting: supplies building materials and DIY goods through its network of merchant businesses and online platform capabilities. It operates both in the 'light side' (building materials and timber) and 'heavy side' (civils and landscaping), through 30 locations in the UK.
- Heating and Plumbing: a specialist distributor in the UK of heating and plumbing products to a UK network of independent merchants, installers and the general public. The division offers its customers an attractive proposition through a multi-channel offering. The division operates over 15 locations enabling nationwide next day delivery service.
Lords was established over 35 years ago as a family business with its first retail unit in Gerrards Cross, Buckinghamshire. Since then, the Group has grown to a business operating from 45 sites. Lords aims to become a £500 million turnover building materials distributor group by 2024 as it grows its national presence.
Lords was admitted to trading on AIM in July 2021 with the ticker LORD.L. For additional information please visit www.lordsgrouptradingplc.co.uk.