Building materials distributor Lords has acquired its online-only rival CMO in a pre-pack administration deal for £1.8m

The £71m-turnover CMO business was founded in 2008 as Construction Materials Online but was forced to delist from the AIM market in March as it searched for additional funding.

Lords has now acquired its assets and 120 employees in the pre-pack deal.

Lords said it “acknowledges that the events leading to the acquisition have had an impact on a number of stakeholders, including creditors and suppliers.”

The firm added: “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.”

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.”

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.”

All trading activity continues under the new ownership without interruption. Customers,  suppliers, and partners are being contacted directly to ensure continuity and alignment.