LONDON, UK: Lords Group, a number one distributor of constructing supplies inside the UK, has acquired a 90% curiosity inside the main plumbing and heating businesses, DH&P Trade Counters Holdings Limited and DH&P HRP Holdings Limited (together ‘DH&P’), for a complete consideration of £9.3 million.
The remaining 10% curiosity in DH&P’s issued share capital will be retained equally by the business’ present vendors, who will stay of their administration roles with the business. The Acquisition has been funded from Lords’ existing resources and is anticipated to be instantly earnings accretive post completion.
DH&P Trade Counters Holdings Limited is a number one plumbing heating merchant, consisting of 5 branches located with a strong regional focus in Ipswich, Chelmsford, Southend, Benfleet and Colchester. The enterprise additional extends the Group’s existing plumbing and heating community of 9 branches represented under the Mr Central Heating brand.
The DH&P HRP Holdings Limited enterprise is a nationwide distributor of plumbing and heating spares servicing four hundred customers, whose operations align strongly with the Group’s APP Wholesale division that distributes plumbing and heating merchandise nationwide to 2,400 customers.
For the year ended 30 July 2021, DH&P generated revenues of £27.6 million and underlying EBITDA of £2.0 million.
The acquisition consideration will be satisfied by an preliminary £8.93 million money payment and a deferred money element of £357,000 to be paid in 12 months, on a cash-free, debt-free basis. Simultaneous name and put choices over the remaining 10% of DH&P’s issued share capital will be held by the Group and DH&P’s vendors, respectively, which will not be exercisable previous to 31 March 2025 and the price topic to DH&P’s EBITDA performance.
Shanker Patel, Chief Executive Officer of Lords, said: “We are delighted to announce this excellent extension of Lords’ plumbing and heating business. DH&P have constructed up a solid enterprise and we’re actually excited to welcome the forty six DH&P employees to the Lords Group family. Importantly, the acquisition will be extremely complementary to our existing Mr Central Heating and APP Wholesale companies inside the Plumbing and Heating division and can assist to extend our buyer base, broaden our product providing and improve our UK geographic coverage.”
Lords was admitted to buying and selling on AIM in July 2021 with the ticker LORD.L. www.lordsgrouptradingplc.co.uk