Lords has announced its acquisition of 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 deal brings together Lords’ infrastructure and merchanting expertise with CMO’s digital-first online model, and, according to the company, reflects Lords’ continued focus on growth, diversification, and digital innovation in the construction materials distribution sector.
The trade and assets of CMO subject to the acquisition exclude the ‘Tiles’ business formerly owned by CMO Group Limited and generated revenue in the year ended 31 December 2024 of around £52 million. The total cash consideration payable of £1.8 million will result in Lords acquiring a property valued at £1.2 million.
Founded in 2008 as Construction Materials Online, 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 and a unique hybrid approach combining online convenience with expert technical support, CMO has brought true disruption to a traditionally offline industry
Following January sales down 15% year-on-year, and having failed to secure additional funding, CMO Group announced, in February, that Chair Ken Ford and Director Helen Deeble had stepped down, and that the business intended to delist from London’s AIM market and re-register as a private company as of 27 March.
Lords says it acknowledges that the events leading to the deal have had an impact on a number of stakeholders, including creditors and suppliers. The pre-pack administration process was undertaken with careful consideration and in close coordination with legal and financial advisers, with the intention of preserving as much business continuity, employment, and value as possible.
CMO's 120 employees or so are expected to remain with the business. All trading activity continues under the new ownership without interruption. Customers, suppliers, and partners are being contacted directly to ensure continuity and alignment.
Dean Murray, CEO of CMO, said: “The acquisition marks a new and exciting chapter for CMO. We have built a strong, digitally-led business over the past 15 years, and in Lords we have found a partner that not only understands our model but shares our ambition. I am incredibly proud of what the CMO team has achieved and excited about what is next.”
Commenting on the deal, Shanker Patel, CEO of Lords, said: “We are delighted to welcome CMO into the Lords family. CMO brings a well-established digital platform, strong customer reach, and a specialist product-led approach that complements our own. This partnership allows us to blend traditional merchanting strengths with cutting-edge digital capabilities.
“We are also mindful of the impact of the pre-pack administration process on affected parties and are committed to conducting the transition with respect. Our focus now is on ensuring a stable and successful future for the CMO business and all its stakeholders.”
