Long-time residential estate agent and Thames Tap partner Haslams in Reading has been acquired by London-based Foxtons.
The sale of Friar Street-based Haslams, one of two agents acquired by Foxtons alongside Watford-based Imagine Property Group, is for an initial sum of £7.6 million plus a deferred figure of £2.4m. Imagine’s initial sum is £5m with £1m deferred. The deferred money is linked to performance targets.
Haslams Estate Agents, which dates back to 1838, also has branches in Wokingham and Crowthorne following the acquisition of the Michael Hardy brand while Imagine Property Group operates from three branches and is focussed on Watford and its surrounding areas.
Both businesses are being bought from private individual shareholders.
The acquisitions, which are expected to deliver attractive long-term returns on capital, will be funded using the group’s existing £30m loan, which has the option to be extended to £40m subject to bank approval.
In a statement to the Stock Exchange, Steve Woodford, executive chairman of Haslams, said: “Having led the Haslams Group for over three decades, it was important to me for our buyer to be a custodian of our business, building on our existing successes and nurturing the exceptional expertise across the Group. Foxtons was the perfect fit and I’m looking forward to seeing how both businesses will excel after combining forces.
“With the ability to leverage the power of Foxtons’ platform, I’m extremely confident the business will go from strength-to-strength.”
Mr Woodford, who has run the firm for 31 years, told Thames Tap the Haslams name will remain and he will continue with the firm as a consultant. He told us the deal with Foxtons was completed in just 60 days.
He said: “I personally feel I’ve taken the business as far as I can and so, for new investment, new technology, they fit the bill. They have been very impressive. What they are able to offer will be great for the business.”
The deals represent Foxtons’ first moves out of London and Mr Woodford said new technology and marketing will help take Haslams’ business to the next level. The firm employs around 80 staff in its three offices.
Guy Gittins, chief executive of Foxtons, 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 £25-30m 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.
“Reading and Watford are new markets for Foxtons and reflect our confidence that the Foxtons operating platform, and in particular our technology, data and reach, can unlock new growth opportunities in these new markets.”
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