Belvoir swallowed up by rival in £110m deal to create letting agents giant
The Property Franchise Group (TPFG) and Belvoir Group have today announced they have agreed on the terms of an all-share merger to create the UK’s leading property franchise business.
TPGF – which operates brands including Hunter’s and Ellis & Co – will absorb Belvoir in a deal worth 277.4p per share, equivalent to around £110m.
If the deal goes ahead the combined group will have more than 930 property franchise locations, managing approximately 152,000 tenanted properties across the UK. The parties also believe the new company will sell more than 28,000 properties per annum across its locations.
In the year to the end of December 2022, the two companies generated over £60m in combined revenue with 41 per cent of the total recurring revenue from rental agreements as well as management service fees of £27m. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) would have been £22.5m
The companies said that if the deal goes ahead the combined group will have a market capitalisation of approximately £214m based on current market values.
As the smaller of the two groups heading into the deal, Belvoir shareholders will hold 48.25 per cent of the merged business, with TPFG shareholders owning 51.75 per cent if the deal is completed.
The deal has the support of one of Belvoir’s largest shareholders, accounting for 16.6 per cent of the company’s issued share capital.
Jon Di-Stefano, non-executive chair of Belvoir, said: “The merger of Belvoir and TPFG combines two businesses with much in common, each supporting a network of entrepreneurial franchises, and will create one of the UK’s largest multi-brand lettings and estate agency groups combined with a growing financial services business.”
Paul Latham, non-executive chair of TPFG, said: “Belvoir brings further breadth through its nationwide network and a financial services business which will be complementary to our current offering. The merger will enable us to continue to grow in the sector and, ultimately, deliver greater value to shareholders of the bombined group.”