Lords Group Trading PLC - London-based distributor of building, plumbing, heating and DIY goods - Acquires independent builders’ merchant AW Lumb for £23.1 million in cash, with £19.5 million due on completion and £3.6 million to be paid in equal annual instalments over the next five years.

Lords will fund the acquisition through its cash resources and debt facilities, and will provide the group with an extended product offering and geographical reach into the north of England.

In addition, Lords has agreed with HSBC to raise its revolving credit facility to £50 million from £30 million, and its invoice discounting facility to £20 million from £10 million.

‘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. AW 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,’ said Chief Executive Officer Shanker Patel.

Current stock price: 99.00 pence

12-month change: down 1% since July 21

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