Lords Group Trading plc (AIM: LORD), a specialist distributor of building materials, plumbing, heating and DIY products, has completed the acquisition of the remaining 6.4% minority shareholding in Direct Heating and Plumbing, known as DH&P. The £1.1 million cash consideration was funded from existing resources, bringing the Group to full 100% ownership of DH&P. The move concludes a process that began with Lords' original 90% acquisition of DH&P in April 2022, and investors will note that the transaction eliminates minority interest dilution across the subsidiary.

Key Points

  • Lords Group Trading plc (AIM: LORD) is a specialist UK distributor of building, plumbing, heating and DIY products
  • The company has acquired the remaining 6.4% minority stake in DH&P, achieving 100% ownership
  • The final option was exercised for £1.1 million in cash, funded from existing Group resources
  • Investors may watch for any operational or financial updates reflecting full DH&P consolidation

Lords Group Completes Full Buyout of DH&P Following April 2022 Initial Acquisition

Lords Group originally acquired a 90% interest in DH&P HRP Holdings Limited and DH&P Trade Counters Holdings Limited in April 2022. At that time, the acquisition structure included a put and call option over the remaining 10% shareholding retained by the vendors, exercisable at a predefined market value. Earlier in the current year, Lords completed a purchase of 3.6% from one of the vendors, reducing the outstanding minority interest to 6.4%. The latest transaction exercises the remaining option, bringing total Group ownership of DH&P to 100% and concluding the acquisition process initiated over three years ago.

£1.1 Million Cash Consideration Funded From Existing Lords Group Resources

The final 6.4% minority stake was acquired for £1.1 million in cash, with the announcement confirming the consideration was funded entirely from the Group's existing resources rather than new debt or equity issuance. This approach reflects the Group's stated financial position at the time of the transaction. Lords operates across 50 sites in the UK, with its Plumbing and Heating division — under which DH&P falls — running 15 locations and offering a nationwide next-day delivery service to independent merchants, installers and the general public through a multi-channel model.

DH&P Strengthens Lords' Plumbing and Heating Division Across UK Trade Counters

DH&P operates as a specialist plumbing and heating distributor serving a UK network of independent merchants, installers and retail customers. Its integration sits within Lords' broader three-division structure, which also includes a Merchanting division operating through 33 UK locations covering building materials, timber, civils and landscaping, and a Digital division trading through nine specialist websites under the CMO Superstores brand. Full ownership of DH&P removes the minority interest obligation and simplifies the Group's subsidiary structure, which the announcement suggests was always the intended endpoint of the original deal framework.

Lords Group Background: A Family-Founded Business Now Operating From 50 UK Sites

Lords Group Trading was established in 1982 as a family business, opening its first retail unit in Gerrards Cross, Buckinghamshire. The Group has since expanded significantly, now operating from 50 sites across the United Kingdom. Its customer base principally includes local tradesmen, small to medium-sized plumbing and heating merchants, construction companies and the general public. The Group's Chief Executive Officer is Shanker Patel, with Stuart Kilpatrick serving as Chief Financial Officer. Cavendish Capital Markets Limited acts as Nominated Adviser and Joint Broker, alongside Berenberg as Joint Broker.