Business
Acquisition of L&G Property Franchise Business
Acquisition of L&G Property Franchise Business.
About this update from Property Franchise Group Plc
[{"type":"text","content":"\n \nRNS Number : 7726V MartinCo PLC 31 October 2014 \n \n\n \nMartinCo Plc\n(\"MartinCo\" or the \"Group\")\nAcquisition of Legal & General's Property Franchise Business\n \nMartinCo plc (AIM: MCO), one of the UK's largest property franchise businesses, today announces that it has acquired the entire issued share capital of Xperience Franchising Limited and Whitegates Estates Agency Limited (together \"Xperience\"), comprising the entire property franchise business of Legal & General (the \"Acquisition\") for a consideration of £5.0m in cash plus an amount representing the net assets of Xperience at completion, expected to be approximately £1.0 million in cash. The business is being acquired debt-free and with no inter-company loans.\n \nXperience is a pure franchised lettings and estate agency group with 89 offices and 75 franchisees, comprising four highly regarded High Street brands, CJ Hole, Ellis and Co, Parkers and Whitegates with its financial services offered by Legal & General. \n \nThe acquisition is expected to be immediately earnings enhancing for MartinCo.\n \nHighlights\n \n· Increased UK footprint - The enlarged Group now comprises 282 franchised offices and 1 company owned office. It now owns the master franchise licences for five established property brands and is trading in an additional 44 franchise areas (after allowing for overlap).\n \n· Substantial addition of lettings portfolio - Xperience brings over 11,000 tenanted, managed properties, increasing the Group total to over 43,000. One objective of the IPO in December 2013 was to raise funds to acquire portfolios of tenanted, managed properties. The Directors' goal of 40,000 managed properties by the end of 2015 has been exceeded within 11 months of the IPO.\n \n· Strengthened management - the Xperience franchise management team is now part of the Group and Xperience's Managing Director Michael Stoop has accepted the position of Group Managing Director.\n \n· Tight strategic fit in London - the acquisition puts the Group in a strong position within the London market - Ellis & Co adds 20 offices to the existing 26 Martin & Co offices with overlap between the offices limited to only two f...