- Lords Group Trading
- 15 February 2022 13:41:48
Source: Sharecast
The AIM-traded firm said under the agreement, Hevey was provided with exclusivity until 31 March in relation to its potential acquisition of the branch, which generated revenue of £5.1m in 2021.
Lords said the acquisition would offer synergies for the Sudbury branch and the wider merchanting division across product range, acquired customers and digital presence, while also further enhancing Hevey's growing East of England presence.
While the potential acquisition remained subject to agreement between the parties, it was envisaged that it would see all employees of the Sudbury branch transferred into the employment of Lords.
The total consideration payable of no more than £2.2m would be met from the company's existing cash resources, the board said.
“The proposed acquisition of GMGB's timber and building materials business is another strong statement for Lords, as we continue to deliver the group's merger and acquisition strategy, set out at IPO,” said chief executive officer Shanker Patel.
“The potential acquisition will, if completed, further diversify our offering to existing customers and will offer significant synergies with our merchanting division.”
At 0903 GMT, shares in Lords Group Trading were up 0.49% at 102.5p.