Foxtons has completed the acquisition of Douglas & Gordon, one of the highest profile London agency networks, for £14.25m.
Speculation was rife last month that Foxtons was planning to make a move to buy the family-owned independent agency, which launched its first office just off Sloane Square in 1958.
In response to press speculation, Foxtons issued a statement last week confirming that was indeed hoping to agree a deal to buy Douglas & Gordon.
Foxtons announced this morning that it has purchased the entire issued share capital of Douglas & Gordon from its controlling Talbot Willcox family and employee shareholders.
The acquisition is in line with Foxtons stated strategy of acquiring high quality businesses with strong lettings books and follows the recent acquisitions of London Stone, Pillars Estates and Aston Rowe during the course of 2020.
Douglas & Gordon is a well-respected brand and large lettings business delivering around 65% of total revenues from 2,900 tenancies. The Directors believe that D&G will fit well with Foxtons’ existing business model due to its high level of customer service and compliance, strong fee integrity, well-established landlord relationships and similar customer-focused and results-based culture.
The Douglas & Gordon business will continue to be run as a separate brand and with the existing management team remaining in place.
Foxtons CEO Nic Budden commented: “Douglas & Gordon is a business we have long admired and respected. Like us, it is a business with intimate knowledge of the London market and a culture built around delivering results for customers making it an excellent strategic fit.
“Today’s announcement follows the acquisitions of London Stone, Pillars Estates and Aston Rowe in 2020 and demonstrates our commitment to use the Group’s cash resources to acquire well run businesses that advance our strategy and offer attractive financial returns.
“We welcome the Douglas & Gordon team to the Foxtons Group and look forward to working with them to deliver for all of our customers.”
Comments (6)
In my humble view two firms that are a shadow of their former selves , D&G lost the creative flare once Ivor and Ed moved on and Foxtons have been on the slide ever since Private Equity took over from John Hunt the share price and exodus of top talent says it all.
As a result Dexters now have their tanks firmly on their lawn and the Talbot Willcox family will be pleased to get out with £14m even though a lot less than the £20m they were rumoured to be looking for for years but no one would pay. Why Foxtons want more offices ( many I suspect loss making or break even at best ) in areas they already cover is a mystery, must be the rent book. How long before D&G disappears from the high street, Dead & Gone
This underlines why I never take part in any company fundraising and makes me wary of trusting any fund manager with my money.
Foxtons raised £20m in fundraising last year, this is money they have gone to institutional investors and acquired, not based on the performance in the business.
For me it’s everything that’s wrong with Capitalism that failure is met with more money coming from the City and then used to help paint a different picture in the business.
I don’t even think this or the other acquisition they have made will capture the imagination of a high volume of investors that would affect the share price.
“Those who fail to learn from history are doomed to repeat it!
Winston Churchill
Here we go again , The magic roundabout Countrywide rinse and repeat .The next step will be borrowing money to buy in revenue hoping to add “value”
The word “synergy “likely to be oft repeated
D &G might tick the box of a good geographical spread but paying out in hard cash with just a £0.5m retention is hardly likely to keep the Directors on the premises for long
With no equity in Foxtons why remain as salarymen ? as Countrywide found out as the main bread winners headed to the beach
D&G should have been paid out with a great dollop of paper not all cash
Congratulation all!!!
Despite what other might reckon I see this as an intelligent spreading of the portfolio and client base. It provides them a useful and credible stepping stone out of the M25 along the M4, M3 and A3
Have you seen where the D&G offices are? They’re no further out than the Foxtons offices.
but the client base is