Belvoir Group, the Grantham-based estate agency firm, has revealed plans to merge with The Property Franchise Group (TPFG) to create a combined business worth some £214.4m.
The move was revealed this morning (January 10) by the companies who have recommended the merger to their respective shareholders.
They say the combined group will have more than 930 property franchise locations, managing approximately 152,000 tenanted properties across the UK and will be expected to sell more than 28,000 properties a year.
TPFG acquired York-based estate agents Hunters in 2021.
For the financial year ended 31 December 2022, TPFG and Belvoir together generated in excess of £60m in combined revenue, with management service fees of approximately £27m and adjusted EBITDA of around £22.5m.
If the deal goes ahead, the new board will comprise, among others, Gareth Samples (TPFG chief executiveofficer), David Raggett (TPFG chief financial officer) and Michelle Brook (Belvoir executive director), with Paul Latham (TPFG chair) as the combined group’s chair.
Belvoir shareholders will hold around 48.25%. and TPFG shareholders 51.75%.
Paul Latham, non-executive chairman of TPFG, said: “I am delighted to confirm that we have reached an agreement with the Belvoir Board and major Belvoir Shareholders on the Merger with Belvoir. We believe that the Merger represents a compelling opportunity for all shareholders.
“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 Combined Group.”
Jon Di-Stefano, non-executive chairman 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.
“With their complementary geographic footprints providing both scale and diversification across a variety of high street and hybrid brands combined with high levels of recurring revenue, we feel sure that the combined group will provide a robust platform from which to grow.”