The UK's Foxtons Group has acquired two estate agents, Haslams Estate Agents and Imagine Property Group.
The deal volume comprises a total initial consideration of £12.6 mln (€15 mln), with £3.4 mln of total deferred consideration contingent on the delivery of performance targets.
Haslams’ initial consideration is £7.6 mln, with £2.4 mln deferred, and Imagine’s initial consideration is £5.0 mln, with £1.0 mln deferred.
According to Foxtons, the acquisitions reflect further progress against the group’s strategy to acquire high quality, earnings accretive, lettings focused businesses, which increase the group’s exposure to recurring lettings revenues.
The acquisitions expand Foxtons’ network into the new, complementary markets of Reading and Watford, both commuter towns with excellent transport links to London, and build on Foxtons’ success in the London commuter towns of Guildford and Woking.
Both firms are the largest lettings and sales agents in their core markets and increase the group’s branch footprint to 64 branches. The deals will deliver a further 2,900 tenancies, increasing the size of Foxtons’ portfolio of tenancies by 10% to over 31,000 tenancies.
Guy Gittins, Foxtons CEO, commented: 'Our latest acquisitions add to our strong track record of identifying, acquiring, and integrating high quality lettings businesses to deliver attractive returns and are a key part of our strategy to deliver £25-30 mln adjusted operating profit in the medium term.
'We are delighted to have completed the acquisitions of Haslams and Imagine as we continue to pursue acquisitive lettings growth, to supplement our organic growth strategies.
'We have been impressed with the quality of both businesses which hold established leadership positions in their local markets and have built long-standing client relationships over many years, making them a great fit with Foxtons.'
