Chiltern Timber Supplies — Acquisition by Lords Group Trading plc
Independent timber merchant operating from a single site in Hemel Hempstead, Hertfordshire, specialising in hardwoods, specialist timber sections, landscaping products and veneered sheet materials with an in-house milling facility, acquired by Lords Group Trading, providing a small-business transaction reference for specialist building-materials distribution.
Acquirer
Lords Group Trading plc
Year
2023
Initial Consideration
£1.175m initial (£1.65m max.)
Revenue
£2.6m (FY2022)
Adjusted EBITDA
£250k (FY2022 EBITDA)
Initial Consideration / EBITDA (net of excess cash)
3.2×
Industry
Building Materials Distribution
Transaction
On 3 April 2023, Lords Group Trading completed its acquisition of Chiltern Timber Supplies, an independent timber merchant operating from a single site in Hemel Hempstead, Hertfordshire. The business specialised in hardwoods, specialist timber sections, landscaping products and veneered sheet materials, supported by an in-house milling facility. Chiltern Timber generated £2.6 million in revenue and £250,000 in EBITDA during 2022. Lords agreed maximum consideration of £1.65 million, comprising £1.175 million payable on completion and up to £475,000 in deferred payments linked to future earnings targets. In its September 2023 interim results, Lords reported an initial acquisition multiple of 3.2× EBITDA, calculated net of excess cash. The maximum consideration of £1.65 million would represent 6.6× historical EBITDA before cash adjustments, although that includes contingent payments that were not guaranteed.
Why the Premium?
- Established independent timber merchant
- Specialist hardwood and landscaping products
- In-house milling and product customisation capabilities
- Established local trade customer relationships
- Opportunities for cross-selling through a larger merchanting network
- Potential operating efficiencies following integration
SME Takeaway
Chiltern Timber provides a particularly relevant small-business acquisition example, with annual revenue of just £2.6 million. The buyer-reported 3.2× initial EBITDA multiple illustrates the valuation of a small, specialist building-materials merchant with established customers and differentiated products. However, the total consideration included contingent payments linked to future earnings. The 3.2× figure represents the buyer's initial completion multiple net of excess cash, rather than the maximum possible acquisition price divided by EBITDA. This distinction is important when comparing the transaction with conventional EV/EBITDA benchmarks.
Sources
Disclaimer: Case study figures are based on publicly available information and are provided for illustrative purposes only. Transaction values, EBITDA figures and implied multiples may reflect different reporting periods, definitions and deal structures, and some multiples are calculated from disclosed figures rather than reported by the parties. They are not formal valuations, investment advice or a substitute for independent professional advice.