Lords Group Trading Acquires CMO, UK's Largest Online Construction Retailer
Why we think this is good
The acquisition of CMO Group Limited, the UK's largest online-only retailer of construction products, is a strategic move that aligns with Lords Group Trading's focus on growth, diversification, and digital innovation in the construction materials distribution sector. The transaction brings together Lords' merchanting expertise with CMO's digital-first model, which is expected to drive synergies and strengthen the company's position in the market. While some financial details are still unclear, the overall strategic rationale and potential for earnings growth make this a positive development for the company.
Key Points
- Lords Group Trading PLC has acquired the trade and assets of CMO Group Limited, the UK's largest online-only retailer of construction products
- The acquisition brings together Lords' infrastructure and merchanting expertise with CMO's digital-first online model
- CMO has built a market-leading e-commerce platform serving homeowners and trade professionals through a suite of specialist superstore websites, with over 140,000 listed products
- The acquisition allows Lords to blend its traditional merchanting strengths with cutting-edge digital capabilities
- The total cash consideration payable of £1.8 million will result in Lords acquiring a property valued at £1.2 million
Summary
Lords Group Trading PLC has acquired the trade and assets of CMO Group Limited, the UK's largest online-only retailer of construction products, following a pre-pack administration process. The acquisition brings together Lords' infrastructure and merchanting expertise with CMO's digital-first online model, reflecting Lords' continued focus on growth, diversification, and digital innovation in the construction materials distribution sector.
Key Highlights:
- CMO has built a market-leading e-commerce platform serving homeowners and trade professionals through a suite of specialist superstore websites, with over 140,000 listed products.
- The acquisition allows Lords to blend its traditional merchanting strengths with cutting-edge digital capabilities, providing a compelling proposition to customers.
- The total cash consideration payable of £1.8 million will result in Lords acquiring a property valued at £1.2 million.
- Broker targets from Berenberg Bank have maintained a 'Buy' recommendation on Lords, with a price target range of 80-90p.