Colliers CRE buys West End’s Godfrey Vaughan
Colliers CRE has bought London West End agency Godfrey Vaughan for more than £8m.The purchase is for £7m in cash plus 1.6 million new Colliers CRE shares worth around £1.1m.
Colliers CRE has rapidly expanded in recent years and plans to continue snapping up UK businesses. It is also in early talks with north-west agency Sanderson Weatherall over a possible takeover.
The timing of the deal with Godfrey Vaughan is thought to be linked to the change in the Capital Gains Tax rate to 18%.
David Izett, chief executive of Colliers CRE, said: ‘In terms of timescale for getting the deal done, Capital Gains Tax did play a role it helped drive the timetable, but it didn’t drive the deal. Charles and I started talking about this in 2006 then I just decided that I’ve got to do this because I really want to do this.’
Godfrey Vaughan employs 24 staff in total, all of whom will be offered employment contracts with Colliers. In the year to 31 March 2008, based on management accounts, Godfrey Vaughan generated revenue of £4.2m. In the year to 31 March 2007, the business produced revenue of £4.1m and profits before tax and partners’ distributions of £1.8m.
Following completion, Godfrey Vaughan will be rebranded as Colliers Godfrey Vaughan.
Property Week, 11.04.08