LONDON, UK: Lords Group’s subsidiary, Hevey Building Supplies Limited has signed an exclusivity agreement to acquire a branch of the timber and building materials business of Grafton Merchanting GB Limited (GMGB), currently operating from a single site in Sudbury, Suffolk.
The total consideration payable of not more than £2.2 million will be met from the Company’s existing cash resources.
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.
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.”