Thu, 12 Jun 2025 | BUSINESS SALE
Online-only building materials distributor CMO has been acquired by rival firm Lords in a pre-pack administration deal for £1.8 million. CMO, which generated turnover of £71 million in its most recent accounts, was forced to delist from the AIM market in March of this year, amid a search for additional funding.
CMO was founded in 2008 as Construction Materials Online and built a market-leading e-commerce platform, aiming to disrupt an industry that is traditionally seen as being primarily offline.
However, with sales down 15 per cent year-on-year in January and having failed to secure additional funding, the firm delisted and re-registered as a private company, with Chair Ken Ford and Director Helen Deeble both stepping down.
Following a pre-pack administration process, CMO Group Limited’s trade and assets were acquired by Lords for a total cash consideration of £1.8 million. The deal does not include the ‘Tiles’ business formerly owned by CMO Group, which generated revenue of around £52 million in the year to December 31 2024.
All 120 of CMO’s employees are expected to remain with the business post-sale, with all trading activity set to continue without interruption under the new ownership.
CMO CEO Dean Murray commented: “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.”
Shanker Patel, CEO of Lords, added: “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.”
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