LONDON (Alliance News) - Business recovery and property services company Begbies Traynor Group PLC on Friday said it has acquired Pugh Auction Group Ltd for up to GBP4.6 million.
Begbies will pay GBP2.0 million in cash upfront for Pugh - on a cash-free, debt-free basis - with a further GBP2.6 million to be paid based on Pugh meeting financial targets in the five years following completion of the deal.
Pugh is a commercial property auctioneer, handling regular auctions in Leeds and Manchester. It is the largest commercial property auctions firm operating outside of London, Begbies said.
Pugh made pretax profit of GBP0.8 million on revenue of GBP2.0 million in the financial year that ended on March 31. Begbies said Pugh will be earnings enhancing both in its current financial year, which began on May 1, and after any additional consideration is paid.
Begbies will integrate the business with its existing Eddisons property services arm and said the deal will made Eddisons the third largest commercial property auctioneer in the UK.
"I am pleased to announce this acquisition which is in line with our strategy to develop our property services division, to increase both the scope of its service offering and geographical coverage," said Ric Traynor, Begbies Traynor's executive chairman.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Begbies (BEG)