Lords Group Acquisition of Advance Roofing Supplies for £3.74m

DISTRIBUTOR OF BUILDING MATERIALS, Lords Group has announced its acquisition of Advance Roofing Supplies Limited for £3.74 million.

The deal includes £3.49 million which has been paid on completion and the balance of £0.25 million is payable 12 months after completion.  At the time of acquisition, 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.  The company operates from two locations in Aylesbury, Buckinghamshire and Long Marston, Hertfordshire.

Lords Group Acquisition

AIMS listed Lords Group says 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.

Lords expect to expand the Advance Roofing Supplies brand via implant branches into relevant Merchanting locations. The process is starting with Lords’ 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 is being funded from Lords’ existing resources and Lords expect 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.”

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