The owners of LRG have reportedly hired Rothschild to explore a potential sale of the estate agency business, in a deal that could value the company at up to £800m, according to Sky News.
LRG operates more than 300 branches across the UK and employs around 3,500 people. The firm owns a number of well-known regional brands, including Acorn, Chancellors, and Stirling Ackroyd.
Platinum Equity, the US-based private equity firm, acquired LRG – then trading as Leaders Romans Group – in January 2022 from Bowmark Capital, a smaller UK buyout firm. The business was then known as Leaders Romans Group.
LRG, led by CEO Michael Cook, manages a portfolio of 73,000 properties and oversaw property transactions worth £3.6 billion last year.
According to Sky News, Platinum Equity’s decision to explore a sale is partly driven by fears that chancellor Rachel Reeves may introduce new housing-related taxes in her upcoming Budget, as the government seeks to raise tens of billions in additional revenue.
Among the measures reportedly under consideration are a potential overhaul of stamp duty, the introduction of a mansion tax, and the removal of primary residence relief for high-value homes.
With the Chancellor’s Budget not expected until late November, serious negotiations with potential buyers are unlikely to advance until the full scope and impact of any new tax policies become clear.
Platinum Equity has been approached for comment.
Not bad growth from a first floor office in Brighton, the buyer will be a bank or BlackRock this time.
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If they can get LRG away at anywhere near £ 800m, it makes Foxtons shares look incredibly good value.
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A success story in many ways, but selling after only 3 years is a bit odd. I guess they can’t see the growth continuing.
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That’s 2.7 mill a branch?
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I would take that…
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They will be lucky if they get half of that figure. Well over priced. Lettings with Renters Rights bill and Compliance is a dead duck, thats why the are exiting the market now.
Good luck if they get the inflated figure.
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