Lords, a leading distributor of building materials in the UK, announces that it has acquired Advance Roofing Supplies Limited (“Advance Roofing Supplies”), a supplier of roofing materials, for a consideration of £3.74 million of which £3.49 million has been paid on completion and the balance of £0.25 million is payable twelve months after completion. As at completion, Advance Roofing Supplies had excess cash of £0.74 million.
Established in 1994, Advance Roofing Supplies, is an independent supplier of roofing materials, specialising in pitched and flat roofing sales to customers locally and nationally. Advance Roofing Supplies currently operates from two locations, Aylesbury in Buckinghamshire and Long Marston in Hertfordshire. The acquisition of Advance Roofing Supplies will offer attractive synergies with the Group’s Merchanting division, increasing product range, and expanding the Group’s customer base particularly in the South East of England.
In due course, Lords expect to expand the Advance Roofing Supplies brand via implant branches into relevant Merchanting locations, starting with the Beaconsfield site which itself is currently undergoing an extensive redevelopment to enable extended product range and capacity.
For the year ended 31 March 2021, Advance Roofing Supplies generated EBITDA of £0.6 million on revenues of £6.8 million. The acquisition has been funded from Lords’ existing resources and is expected to be immediately earnings accretive post completion.
Shanker Patel, Chief Executive Officer of Lords, said: “The acquisition of Advance Roofing Supplies further strengthens our service capabilities to existing customers and will offer significant synergies with our Merchanting division. We are delighted to bring Advance Roofing Supplies into the Group, and welcome their 15 employees to our team, as we continue to focus on serving our customers with a wider range of products and services.”
The information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.