Lords Group Trading plc has announced the acquisition of the “business and assets of the Malton Road, London W10 branch of Nu-line Builders Merchants for a consideration of £0.6 million”.
Nu-Line, established in 1965, previously operated from two locations, Westbourne Park Road and Malton Road in the Notting Hill area of West London. The former is being retained by the independent merchant but is reportedly ceasing to trade ahead of being sold for redevelopment by the vendor.
The store becomes the Group’s 12th builders’ merchant branch and under the transaction, Lords will be assigned the Malton Road property leases and will take on circa 25 of Nu-Line’s current employees with experienced Branch Manager Kevin Beecher and his team continuing to support both old and new customers in the W10 area.
The Group also intends to relocate a number of product categories to the Malton Branch from the Nu-line Westbourne Park Road branch, whilst the overall deal is said to offer “synergies for the Malton Branch and the wider Merchanting division across product range, acquired customers and digital presence” and further enhances the Group’s 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 Lords’ states it would be expected to generate revenues of £8.0 million and EBITDA of £0.8 million under the new ownership in FY 2022.
Shanker Patel, Chief Executive Officer of Lords, 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.”
Lords was established over 35 years ago as a family business with its first retail unit in Gerrards Cross, Buckinghamshire. Since then, the Group has grown to a business operating from 33 sites with a combined turnover in excess of £288 million. Lords aims to become a £500 million turnover building materials distributor group by 2024 as it grows its national presence.