LONDON (Alliance News) - Belvoir Lettings PLC on Wednesday said it has entered into a conditional deal to acquire East Midlands-based franchise property sales and lettings company Newton Fallowell and has issued shares to back the deal.
Belvoir said it will pay an initial consideration of GBP3.9 million in cash to acquire Newton Fallowell, with a further GBP2.3 million due based on the company hitting earnings targets through to 2017.
Belvoir will back the deal with the issue of 3.4 million shares at 125 pence per share, raising gross proceeds of GBP4.3 million. Shares in Belvoir were untraded on Wednesday morning, having last traded at 132.10 pence.
The AIM-listed lettings company said the deal will expand its presence in the UK and marks its first step in becoming a multi-brand franchise model. It expects the acquisition to be earnings enhancing in its first full year of ownership.
Belvoir also said it continues to trade well, with managed service fees up 14% year-on-year in the year to date.
"We are delighted to be announcing the acquisition of Newton Fallowell. This is an exciting milestone in Belvoir's growth, considerably expanding the size of the Group with a fantastic new brand to add to our portfolio," said Mike Goddard, Belvoir's chief executive.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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