Business
Acquisition of Alloway Timber
Acquisition of Alloway Timber.
About this update from Lords Group Trading Plc
[{"type":"text","content":"\n\n\n\n\nFor immediate release\n\n\n1 September 2023\n\n\n\n \n \nLords Group Trading plc\n('Lords', the 'Group' or the 'Company')\n \nAcquisition of Alloway Timber\n \nLords, a leading distributor of building materials in the UK, is pleased to announce the purchase of Alloway Holdings Limited ('Alloway Timber') for a total net consideration of £2.25 million (the 'Acquisition'). The Acquisition is in line with the Group's stated IPO strategy, due to its complementary geographic position to the Group's growing Merchanting branch portfolio.\n \nEstablished in 1971, Alloway Timber is an independent family-run merchant operating from five sites located in the South East of England at Mitcham, Cheam, Byfleet, Kingston and Putney. The business specialises in providing timber and general building supplies and will join the Group's Lords Builders Merchant network, taking the brand to 17 locations in the South East of England. The Acquisition is expected to be earnings accretive from 2024 financial year, and will achieve a strong return on capital employed as synergies are realised and the business financially and operationally matures in-line with a typical Lords Builders Merchant profile.\n \nFor year ended 31 December 2022, Alloway Timber delivered £15.9 million of revenue and c.£(1.0) million of EBITDA. In the medium term, Lords expect the Alloway Timber branches to reach the margins achieved by the wider Merchanting division.\n \nThe total net vendor consideration is £2.25 million in cash, of which £1.53 million is payable immediately and £0.72 million deferred 12 months from entry into the sale and purchase agreement, with £0.25 million payable to the vendor and £0.47 million to HMRC for corporation tax liabilities in Alloway Timber triggered by the transaction. In addition, the Company will pay down £1.05 million of Alloway Timber's existing debt, immediately post completion of the Acquisition. The Acquisition consideration is net of freehold property disposal of £3.6 million which occurred concurrently with the Acquisition.\n \nShanker Patel, Chief Executive Officer of Lords, said:\n \n\"We are delighted to announce the successful acquisition of Alloway Timber and to welcome their 83 colleagues to the Lords Group family. The acquisition is complementary to our ...