LONDON, UK: Lords Group Trading, a leading distributor of building materials in the UK, has acquired the business and assets of the Malton Road, London W10 branch of Nu-line Builders Merchants Limited (Nu-Line) for a consideration of £0.6 million.
Nu-Line, established in 1965, is an independent builders merchant specialising in the supply of general building materials including timber, paint, electrical, ironmongery and plumbing categories. Nu-line currently operates from two locations, Westbourne Park Road and Malton Road in the Notting Hill area of West London with the former being retained by Nu-line Builders Merchants Limited.
Under the Transaction, Lords will be assigned the Malton Road property leases and will take on circa 25 of Nu-Line’s current employees (the “Malton Branch”).
Lords Group intends to relocate a number of product categories to the Malton Branch from the Nu-line Westbourne Park Road, which is ceasing to trade ahead of being sold for redevelopment by the vendor.
The transaction offers synergies for the Malton Branch and the wider Merchanting division across product range, acquired customers and digital presence. It also further enhances Lords’ strong London presence.
The consideration and an additional £0.2 million of year one capital expenditure will be financed from the Group’s existing cash resources.
For the year to 31 March 2021, the Malton Branch in its acquired form, achieved revenues of £5.8 million and an EBITDA of £0.2 million, and would be expected to generate revenues of £8.0 million and EBITDA of £0.8 million under Lords’ ownership in FY 2022.
Shanker Patel, Chief Executive Officer of Lords Group, said: “We are delighted to announce our first acquisition since our successful IPO in July. Nu-Line has a long heritage and a very strong customer base which will continue to be served in West London by Lords Builders Merchants. We welcome our 25 new colleagues to the Group and look forward to integrating them into our strong, familial culture. As a result of the acquisition, Lords Builders Merchants will further consolidate its position as a clear local leader in West London.”
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