Foxtons expands empire with double buy
Estate agent Foxtons has expanded its empire with the £12.6m acquisition of Haslams Estate Agents and Imagine Property Group.
The group is paying £7.6m for the Haslams business and £5m for Imagine.
Foxtons said the acquisitions were part of its strategy to acquire high-quality, earnings-accretive, lettings-focused businesses with synergistic growth opportunities which increase its exposure to recurring lettings revenue.
Estate agent Foxtons has expanded its empire with the £12.6m acquisition of Haslams Estate Agents and Imagine Property Group.
The group is paying £7.6m for the Haslams business and £5m for Imagine.
Foxtons said the acquisitions were part of its strategy to acquire high-quality, earnings-accretive, lettings-focused businesses with synergistic growth opportunities which increase its exposure to recurring lettings revenue.
The acquisitions increase Foxtons footprint in Reading and Watford and take its portfolio to 64 branches.
Both businesses are the largest lettings and sales agents in their core markets and will add around 2,900 tenancies to Foxtons portfolio of 31,000 tenancies.
The Haslams business operates from three branches primarily focused on the commuter town of Reading, with additional coverage of the nearby towns of Wokingham and Crowthorne through its Michael Hardy brand. Its total revenue and operating profit for the 12 months ended 31 December 2023 were £6.5m and £800,000 respectively.
Imagine also operates from three branches but is focused on Watford and its surrounding areas. Its total revenue and operating profit for the 12 months ended 31 March 2024 were £3.3m and £500,000 respectively.
Both businesses are being bought from private individual shareholders.
Foxtons said it would fund the deals through its existing £30m revolving credit facility.
Chief executive Guy Gittins said: “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 £25m-£30m adjusted operating profit in the medium term.”
