Foxtons buys Douglas & Gordon to expand in London lettings market

(Alliance News) - Foxtons Group PLC said Tuesday it has bought smaller peer Douglas & Gordon ...

Alliance News 2 March, 2021 | 10:03AM
Email Form

(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; thomaslwaite@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

Email Form

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Foxtons Group PLC 66.00 GBX 0.00 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies       Modern Slavery Statement