Foxtons has confirmed the acquisitions of two estate agents for an initial £12.6m consideration, and a deferred £3.4m dependent on future performance targets.

The group has picked up Haslams Estate Agents for an initial £7.6m and £2.4m deferred, as well as Imagine Property Group for £5m with £1m deferred.

Foxtons said the acquisitions would expand its network into the new markets of Reading and Watford as it aims to repeat its previous success in other London commuter towns.

Both new acquisitions are the largest lettings and sales agents in their core markets and will increase Foxton’s branch footprint to 64 branches. They will also increase the size of Foxtons’ portfolio of tenancies by around 10% to over 31,000 tenancies.

Foxtons also revealed that the acquisitions would be funded using a £30m revolving credit facility which has the option to be extended to £40m, subject to bank approval.

“Our latest acquisitions add to our strong track record of identifying, acquiring, and integrating high quality lettings businesses to deliver attractive returns and are a key part of our strategy to deliver £25-30m adjusted operating profit in the medium term,” said Foxtons CEO, Guy Gittins.

“We are delighted to have completed the acquisitions of Haslams and Imagine as we continue to pursue acquisitive lettings growth, to supplement our organic growth strategies.”

Following the deals, Foxtons suggested that with growth initiatives and operating synergies, both firms can deliver “significantly higher levels of profitability”.

Haslams’ unaudited total revenue and operating profit for the 2023 calendar year was £6.5m and £0.8m, respectively, while Imagine’s figures for the year ending 31 March 2024 totalled £3.3m in unaudited total revenue, and £0.5m in operating profit.

Executive chairman at Haslams, Steve Woodford, said: “Foxtons was the perfect fit and I’m looking forward to seeing how both businesses will excel after combining forces. With the ability to leverage the power of Foxtons’ platform, I’m extremely confident the business will go from strength-to-strength.”

Imagine managing director, Mike Cole, added: “The property landscape is changing, and it is essential agents have the best technology, marketing and brand awareness to stay ahead, which is why we chose Foxtons to take the business forward.”

---