Lords, a distributor of building materials in the UK, has acquired the business and assets of Dewsbury-based independent builders merchant, A.W. Lumb.
The £23.1 million deal, payable in cash, consists of £19.5 million due on completion and deferred consideration of £3.6 million payable in equal annual instalments over the next five years. It is to be funded from Lords’ existing cash resources and debt facilities.
The acquisition provides the group with an extension of its product offering and geographical reach into the North of England.
Both key senior management from A.W. Lumb and its 77 employees will be joining the group.
Established in 1964 and family owned until a management buyout in 2017, A.W. Lumb has depots in Dewsbury and Tamworth. A.W. Lumb’s customers include several well-known house builders, civil engineering contractors, local authorities, plasterers and smaller developers.
In the year to 30 June 2021, AWLC generated revenues of £43.3 million, EBITDA of £3.9 million and a profit before tax of £3.8 million.
Shanker Patel, Chief Executive Officer of Lords, said: “This acquisition delivers against our strategy of gaining market share through geographic expansion and product range extension. Specifically, it gives Lords broader reach in the North of the country.
“A.W. Lumb is highly regarded in its local markets, respected for its product expertise and superior service levels and we are delighted to welcome their 77 colleagues and senior management to our team, who we believe share the same values as Lords.
“Furthermore, this acquisition is a major milestone in our growth and supports our stated ambition to reach £500 million revenue by 2024.”
