REG - Lords Group Trading - Exclusivity re Potential Branch Acquisition

Lords TradingAnnouncement

15/02/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220215:nRSO4725Ba&default-theme=true

RNS Number : 4725B  Lords Group Trading PLC  15 February 2022

 

 

 For immediate release  15 February 2022

 

 

Lords Group Trading plc

("Lords", the "Company" or the "Group")

 

Exclusivity re Potential Branch Acquisition

 

Lords, a leading distributor of building materials in the UK, is pleased to
announce that its subsidiary, Hevey Building Supplies Limited ("Hevey"), has
signed an exclusivity agreement (the "Agreement") and reached an agreement in
principle with Huws Gray Limited for the potential acquisition (the "Potential
Acquisition") by Hevey of a Buildbase branch of the timber and building
materials business of Grafton Merchanting GB Limited ("GMGB"), currently
operating from a single site in Sudbury, Suffolk (the "Sudbury Branch").

 

Under the Agreement, Hevey has been provided with exclusivity until 31 March
2022 in relation to its Potential Acquisition of the Sudbury Branch which
generated revenues of £5.1 million in the year to 31 December 2021.  Hevey
will now engage with Huws Gray and Sudbury Branch stakeholders in respect of
the Potential Acquisition, which would offer synergies 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.

 

Whilst the Potential Acquisition remains subject to agreement between the
parties, it is envisaged that the Potential Acquisition will see all employees
of the Sudbury Branch transferred into the employment of the Group.  The
total consideration payable of not more than £2.2 million will be met from
the Company's existing cash resources.

 

Further announcements will be made, as appropriate, in due course.

 

Shanker Patel, Chief Executive Officer of Lords, said: "The proposed
acquisition of GMGB's timber & building materials business is another
strong statement for Lords as we continue to deliver the Group's M&A
strategy set out at IPO. The potential acquisition will, if completed, further
diversify our offering to existing customers and will offer significant
synergies with our Merchanting division."

 

 

- Ends -

 

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  LGT@buchanan.uk.com (mailto:LGT@buchanan.uk.com)
 Norman

 

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 27 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 nine 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 36 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
(http://www.lordsgrouptradingplc.co.uk) .

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQSFLFEFEESELE