Online building merchant CMO Group has taken a step into the plumbing and heating market with the acquisition of JTM Plumbing, in a deal worth up to £5.7 million.
Consistent with CMO’s growth ambitions and strategy to be able to offer everything needed by the homeowner or tradesperson to build a home, the acquisition establishes a foothold for CMO in the online plumbing and heating market, estimated to be worth approximately £800 million.
Founded in 2007, JTM Plumbing is a digital retailer of first-fix plumbing and heating supplies, based in Darlington, County Durham. CMO’s acquisition of the company will extend the its product offering and will be marketed under the brand name Plumbing Superstore.
Dean Murray, CEO of CMO, said: “The acquisition of JTM Plumbing Limited is exciting for us: not only does it take us into a new category expanding our capability into heating and plumbing products but it also expands our addressable market to a swathe of professional tradespeople that we had not targeted previously.
“It also takes us another step further to being a one stop shop for customers and enhances our ability to continue disrupting and revolutionising the underpenetrated online market for building materials.”
CMO’s expansion into the plumbing and heating market aims to complement the company’s portfolio of online ‘superstores’ selling roofing, windows, doors, insulation, drainage, and tiles. CMO acquired Total Tiles in December 2020, and became a publicly traded company after listing on the AIM market of the London Stock Exchange in July this year.
Online penetration of the predominantly offline, £27 billion, builders merchant market is currently only 4%.