Birmingham-based auction house CP Bigwood has acquired the largest auction house in the East Midlands, Graham Penny.
CP Bigwood was itself bought by SDL Group last December, and the acquisition makes SDL’s auction operation the largest in the UK outside of London.
The deal, which completed on Friday, is also expected to double the group’s auction division to more than £160m per year. SDL said this took it into the top four nationwide.
Graham Penny Auctions holds auctions in Derby, Leicester and Nottingham.
The move will see Graham Penny’s shareholder and co-founder James Cockayne retire, while directors John Fearnehough and Graham Penny will continue with the business as consultants.
The business will be run by managing director Andrew Parker, who will report to CP Bigwood chief executive Rory Daly.
Daly said: “This marks the next step in the evolution of SDL’s strategy to build the leading national auction brand, starting with last year’s acquisition of Bigwood and now this exciting move to bring the Graham Penny business into the group.
“The acquisition makes perfect sense for both parties, and gives us unparalleled coverage of the Midlands region.”
In February, Graham Penny Auctions held three auctions in Leicester, Nottingham and Derby, raising £14m across more than 130 lots, while Bigwood’s auction that month saw 138 lots offered, generating more than £17.5m in sales.
Parker said: “The operations of both groups overlap without competing and by working together we will be able to secure additional benefits and operating efficiencies.
“The financial strength, entrepreneurial prowess and logistical support provided by SDL Group will enable the business to develop its market-leading proposition as well as to continue the significant growth it has achieved over the past decade.”
SDL is a national property services group with interests in surveying, valuations, lettings and estate agency.
As reported in last week’s Estates Gazette, SDL is planning further auctions acquisitions and has its eye on the North East and North West.
SDL chief executive Paul Gratton said: “When we acquired Bigwood we said we were intending to build on the existing strengths of the business – auctions and property management.
“This is the first of a number of acquisitions we have in the pipeline and under consideration, and gives us a real auction powerhouse across the UK.
“SDL is a fast-paced, successful growing property services group which has more than quadrupled its turnover in the last five years and remains extremely ambitious.”
