CMO Group is a UK-based online retailer of building materials, offering products in tiling, roofing and drainage materials across seven specialist websites. As of 2021, it is the country’s biggest online-only building materials provider with 75,000 listed products for sale.
The company was established in 2008 by four merchants under the name Construction Materials Online. The founders saw an opportunity to disrupt the online sector by launching online roofing merchant Roofing Superstore, with Drainage Superstore added to the company portfolio in 2014 and Insulation Superstore in 2015.
There followed a management buyout in 2017, supported by private equity group Key Capital Partners which saw the founders stepping down from day-to-day operations. Soon after, the product offering was broadened with 2019’s launch of Tile & Floor Superstore and the acquisition of Total Tiles in 2020.
Admission to Trading on AIM
On 8th July 2021, admission and dealings commenced by way of a Placing of 34,090,909 Ordinary Shares of 1p each at 132p per share. The primary gross proceeds of the Placing amounted to approximately £27.3 million and the company had a market valuation of £95 million.
Reasons for Admission and use of proceeds
The Directors believe that Admission will be beneficial for the Company for the following reasons:
- it will provide CMO with a long-term funding model to execute on strategic opportunities: bothorganically and through targeted mergers and acquisitions;
- the Group will be better placed to attract, recruit and retain key employees, with further incentivization through equity ownership and long-term equity incentive schemes;
- the reduction of debt and restructuring of the Group’s balance sheet funded by the proceeds of the Placing will provide further flexibility to fund future growth; and
- it is expected to raise the Group’s profile with potential supplier partners and with the vendors of prospective acquisition targets.
The Perivan shareholder communications team were delighted to work with Liberum Capital who were appointed Nominated Adviser to CMO on the successful publication of the 139-page admission document.
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