Acquirer: Foxtons Group, a U.K. real-estate agency
Target: Ludlow Thompson Holdings, a lettings-focused estate agent operating across seven branches in London
Price: 10 million pounds ($12.3 million), on a cash and debt-free basis. Of this, GBP1.5 million is deferred for a year
Status: Complete
Foxtons Group, a prominent U.K. real-estate agency, recently announced the successful acquisition of Ludlow Thompson Holdings, a lettings-focused estate agent with operations in seven branches across London. This strategic move, valued at 10 million pounds ($12.3 million), marks a significant milestone for both companies.
Renowned for generating over 70% of its total revenue from lettings, Ludlow Thompson perfectly aligns with Foxtons’ lettings-portfolio acquisition strategy. With a strong emphasis on growing noncyclical and recurring revenue streams, Foxtons aims to solidify its position in the industry. This acquisition is expected to greatly support future earnings growth, and once operating synergies are achieved, Ludlow Thompson will deliver considerably improved levels of profit.
In his statement, Foxtons Chief Executive Guy Gittins expressed his satisfaction with the acquisition, saying, “The acquisition reflects continued progress against our acquisition strategy and our focus on growing recurring lettings revenues, and further supports the delivery of our GBP25 million to GBP30 million operating profit ambition in the medium term.”
Following the announcement, shares for Foxtons Group remained stable at 39.25 pence as of 0819 GMT.
This move showcases Foxtons’ commitment to strategic expansion and consolidation within the real-estate market. It is evident that this acquisition will pave the way for promising opportunities and bolster their long-term profitability.