Savills has announced the proposed £40m acquisition of rural and residential property services business Smiths Gore.
Under the proposed deal the 532 Smiths Gore staff, 27 of whom are partners, will join Savills’ rural energy and projects division and its country residential agency business.
Smiths Gore, which was founded in 1847 and has 31 UK offices and 14 estate offices, specialises in the management of rural property for private clients, institutions and the public sector.
The Peterborough headquartered partnership turned over £30.8m in the year to the end of March 2014 and posted pre-tax profits of £6.3m.
Savills will finance the deal with existing cash and banking facilities.
On completion it will pay £12.5m, plus up to £8.5m in respect of net current assets.
A deferred consideration of up to £16m will be payable on the third anniversary of the deal, and up to £3m after five years.
Both payments will be subject to performance related conditions.
Savills UK executive director Philip Gready will continue to lead the UK REP division with Smiths Gore’s senior partner Andrew Harle joining the Savills UK Board.
Harle joined Smiths Gore in 1987 and was elected senior partner in 2014.
Savills group chief executive Jeremy Helsby said: “Founded in the mid-19th century, Smiths Gore has a similar heritage to Savills and has developed a recognised position as a top-quality rural advisory business. This transaction will enhance the enlarged Savills business’s ability to serve the UK’s landowners with national coverage and a full portfolio of management, agency and asset management services.”
The deal is expected to close in the third quarter of 2015.
