LONDON (Alliance News) - Belvoir Lettings PLC on Monday said it has struck a deal to acquire West Midlands-based property sales and lettings business Goodchilds for GBP3.3 million and has raised GBP3.6 million via a share placing to help fund the acquisition.
Belvoir will pay an initial GBP1.6 million in cash for Goodchilds, with a further two installments of GBP810,000 to be paid in deferred consideration 6 and 12 months following completion of the deal.
In addition, Belvoir will raise GBP3.6 million via a placing of 3.1 million shares at 116.00 pence per share, in a transaction conducted by Cantor Fitzgerald Europe. Shares in Belvoir were down 1.2% early Monday to 120.5 pence.
The first GBP810,000 of the deferred consideration will be funded by the placing proceeds, with the rest to be used to boost its working capital.
Belvoir said the deal significantly expands its market presence in the West Midlands, and it expects the deal to be earnings-enhancing in the first full financial year following completion.
The company also said its trading has continued to be positive.
"We are delighted to be announcing the acquisition of Goodchilds. This is an exciting milestone in Belvoir's growth, considerably expanding the size of the group. Following the acquisition of the Newton Fallowell business in July, this acquisition marks further success in pursuing our multi brand strategy in order to increase market share and geographic coverage," said Mike Goddard, Belvoir's Chief Executive and Executive Chairman.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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