Business
Acquisition of The Guild and Fine & Country
Acquisition of The Guild and Fine & Country.
About this update from Property Franchise Group Plc
[{"type":"text","content":"\n\n3 June 2024\nTHE PROPERTY FRANCHISE GROUP PLC\n(the \"Company\" or the \"Group\")\n \nAcquisition of The Guild of Property Professionals and Fine & Country\nEarnings enhancing network expansion\n \nThe Property Franchise Group PLC (AIM: TPFG), the UK's largest multi-brand property franchisor, is pleased to announce the acquisition of the entire issued share capital of both GPEA Limited and associated companies, trading as The Guild of Property Professionals (\"The Guild\") and as Fine & Country, (together the \"Acquisition\") for a total consideration of approximately £20 million. The consideration is split with £15 million payable in cash on completion and £5 million payable on the first anniversary of completion of the Acquisition.\nHighlights\n· The Guild and Fine & Country provide services to a total of 1,036 outlets, of which 65 are international outlets\n· In the year ended 31 December 2023, the Acquisition produced audited revenues of £13.2 million, audited EBITDA of £3.5 million and PBT of £3.3 million\no 73% of FY2023 revenues were from recurring memberships and licences\n· Total consideration represents c.5.7x 2023 audited EBITDA\n· Initial consideration of approximately £15 million, payable in cash, has been funded through a new facility with Barclays Bank \n· Post-Acquisition leverage for the Group will be below 1x FY2023 pro forma adjusted EBITDA\n· The Acquisition fits within the Group's strategy to acquire accretive businesses with complementary and recurring revenue streams which deliver network expansion and geographic growth\n· Well regarded and experienced management team, including Iain Mackenzie, who will remain with the businesses\n· Expected to be immediately earnings enhancing\n \nGareth Samples, CEO of TPFG, commented: \"The Acquisition continues to deliver on our wider strategy of delivering breadth and depth to our network. It further enhances TPFG's recurring revenue streams, adds the additional dimension of licensing to its platform and one significant complementary service, printed marketing materials. I am really excited about working alongside Iain McKenzie and the team to continue the growth across th...