Foxtons Group plc has acquired the entire issued share capital of Aston Rowe Holdings Limited and its subsidiary Aston Rowe Limited.
Aston Rowe is a high-quality independent estate agent operating primarily in Acton and Brook Green. Through the transaction, Foxtons will acquire Aston Rowe's lettings book comprising 689 tenancies, property management services and all 10 lettings employees. The existing Aston Rowe sales business does not form part of the transaction and will continue to be run by the existing owners, who will also retain the trading premises and the Aston Rowe name.
The Directors believe the lettings book will fit well with the existing business model and branch network due to the high level of customer service and strong growth record. It is expected that this transaction will be earnings enhancing in 2021.
The cash consideration for Aston Rowe is £2.2m, on a cash and debt-free basis, of which £0.2m is deferred for a period of 6 months. The consideration is being funded by Foxtons' existing cash resources. The acquired Lettings business had unaudited revenue and profit before tax for the 12 months ending 31 August 2020 of £1.1m and £0.5m respectively. Gross assets at 31 August 2020 were £2.0m.
Taking into account the earlier acquisitions made in 2020, Foxtons has now acquired a total of 1,600 tenancies, with historical annual revenues of £2.8m for a total consideration of £4.6m.