Property franchise business MartinCo expands UK presence with new £5m deal
ONE of the UK’s largest property franchise businesses, MartinCo, has acquired the entire issued share capital of Xperience Franchising and Whitegates Estates Agency.
Whitegates Estate Agency, established in 1978, owns the master franchise for Whitegates, which trades at 36 offices through 32 franchisees in Yorkshire, Lancashire, Merseyside, North Wales, East Midlands and Warwickshire.
The deal comprises the entire property franchise business of Legal & General and is valued at £5m in cash plus an amount (estimated at £1m) representing the net assets of Xperience on completion. The business is being acquired debt-free and with no inter-company loans.
Xperience is a pure franchised lettings and estate agency group with 89 offices and 75 franchisees, comprising four High Street brands: CJ Hole, Ellis and Co, Parkers and Whitegates, with its financial services offered by Legal & General.
The acquisition increases MartinCo’s total UK offices to 283 and increases the number of tenanted managed properties to over 43,000. It is estimated that the acquisition will increase group revenue by around £0.3m in the final two months trading of 2014.
Ian Wilson, Chief Executive of MartinCo, said: “This acquisition of the entire property franchise business of Legal & General is a significant step forward in the group’s development and was made possible by our IPO and fundraising in 2013.
“This acquisition secures a very substantial portfolio of tenanted, managed properties and balances our mix of lettings and estate agency revenue. It significantly extends our agency network in London and brings with it both an experienced franchise management team and a powerful partner in Legal & General to help the directors exploit opportunities for financial services across our enlarged office network.”
The group will own five franchise master licences and each of its five brands has the potential for further development, he added.
