2nd Mar 2021 10:03
(Alliance News) - Foxtons Group PLC said Tuesday it has bought smaller peer Douglas & Gordon Estate Agents Ltd for GBP14.3 million in cash, as part of its strategy to growth its lettings book.
Douglas & Gordon is a London-based estate agent founded in 1958. It is being bought from the Talbot Willcox family and a group of former employee shareholders.
The lettings business of Douglas & Gordon provides 65% of total revenue, from 2,900 tenancies. D&G will be run as a separate brand and retain its existing management team, Foxtons said.
The GBP14.3 million purchase price is on a cash and debt free basis, with GBP500,000 of the total deferred for 12 months. Foxton's said cash for the deal will come from existing resources.
The acquisition will be "materially" earnings enhancing from 2022, Foxtons said.
"Douglas & Gordon is a business we have long admired and respected," said Foxtons Chief Executive Officer Nic Budden. "Like us, it is a business with intimate knowledge of the London market and a culture built around delivering results for customers making it an excellent strategic fit."
Foxtons said it will publish its 2020 results on Wednesday next week.
The stock remained flat at 63.40 pence early Tuesday in London.
By Tom Waite; [email protected]
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