LSL Property Services Acquisition (5277P)
February 19 2016 - 2:00AM
UK Regulatory
TIDMLSL
RNS Number : 5277P
LSL Property Services
19 February 2016
For immediate release 19 February 2016
LSL Property Services plc
Acquisition
LSL Property Services plc ("LSL") has, through a wholly owned
subsidiary, acquired a 65% interest in Group First Limited ("GFL")
who provide mortgage and protection brokerage services to the
purchasers of new homes through its subsidiaries, Mortgages First
Limited and Insurance First Brokers Limited. The consideration for
the initial investment is GBP9.1m in cash with 50% payable on
completion and a further 50% payable during 2017. The acquisition
is being funded from LSL's existing banking facilities.
The agreement also includes put and call option provisions from
the date the GFL 2018 audited accounts are filed at Companies
House, which if exercised would increase LSL's investment in GFL to
up to 100%. The additional consideration payable for the remaining
shares would be calculated on an earnings multiple of between five
and six times EBITA plus excess cash in the business and is capped
at a maximum of GBP25m.
The management team, who retain a 35% interest, is led by Paul
Maston who founded the business in 1988 and will continue as CEO of
GFL. GFL reported profit before tax of GBP0.7m for the year ended
31 May 2015, at which date it had gross assets of GBP1.8m.
Ian Crabb, LSL Group CEO, said:
"This investment supports LSL's strategy to grow long term
profitability in the provision of residential property services in
the UK, by identifying value enhancing opportunities. Further, the
investment strengthens LSL's relationships with its key
housebuilder clients."
For further information, please contact:
Ian Crabb, Group Chief Executive
Officer
Adam Castleton, Group Finance
Director
LSL Property Services plc 0207 382 0360
Richard Darby, Sophie McNulty,
Sophie Cowles
Buchanan 0207 466 5000
Melanie Cowell (Melanie.Cowell@lslps.co.uk) 07968 604660
LSL Press enquiries
Notes on LSL:
LSL is a leading provider of residential property services to
its key customer groups. Services to consumers include: residential
sales, lettings, surveying, conveyancing and advice on mortgages
and non-investment insurance products. Services to mortgage lenders
include: valuations and panel management services, asset management
and property management services. For further information, please
visit LSL's website: www.lslps.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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