Dewsbury builders merchants AW Lumb has acquired by expanding home counties firm Lords.
The £23.1m deal - which includes £19.5m due on completion and a deferred consideration of £3.6m payable over the next five years - will bring AW Lumb's Dewsbury and Tamworth depots into Lords' network which includes West London and home counties sites.
Lords has funded the deal from existing cash and extended debt facilities, including an increased revolving credit facility of £50m.
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AW Lumb was established in 1964 and last year recorded revenues of £43.3m and a pre-tax profit of £3.8m.
In an update to investors, Lords said the firm's 77 employees will join its group to continue "local knowledge and customer relationships, as well as continuing the family values core to Lords' success".
Shanker Patel, chief executive of Lords, said: "This acquisition delivers against our strategy of gaining market share through geographic expansion and product range extension.
"Specifically, it gives Lords broader reach in the North of the country.
"AW Lumb is highly regarded in its local markets, respected for its product expertise and superior service levels and we are delighted to welcome their 77 colleagues and senior management to our team, who we believe share the same values as Lords.
"Furthermore, this acquisition is a major milestone in our growth and supports our stated ambition to reach £500m revenue by 2024."
The most recent accounts for AW Lumb show it has net assets of £10.1m, £1.9m of pro forma net cash and freehold property with a market value of £4.6m.
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