- Consideration circa $5M
- Funded via bank debt and existing cash reserves
- Bushby Property Group has over 100 years' experience
The Agency (ASX: AU1) announced this morning it has agreed to acquire a leading Launceston-based real estate business.
The acquisition of Bushby Property Group will see The Agency expand its national real estate agency network to Tasmania, launching “The Agency – Team Bushby”.
Bushby Property Group is one of the oldest family-owned real estate businesses, The Agency MD and CEO Geoff Lucas said: “Rarely do we see agencies with over 100 years’ experience, especially in one local area. This level of experience cannot be replicated and it’s why this partnership is so instrumental in helping our network secure a prominent and distinguished entry into the Tasmanian market.”
The Launceston-based company consists of nine sales agents, 32 staff and circa 1,300 properties under management.
Following the acquisition, family members Phillip and Mark Bushby, together with long-term shareholder Eric Andersen will remain in leadership roles.
The consideration for the acquisition is circa $5 million, subject to a number of earn out provisions based on performance and growth. It will be funded via a combination of bank debt and existing cash reserves.
The Agency MD and CEO Geoff Lucas stated: “We’re pleased to welcome another high-quality real estate brand to The Agency. The Bushby Property Group is one of Australia’s oldest family-owned real estate businesses and their depth of experience and results align with our objective to bring the nation’s best real estate professionals together under our brand.”
Mr Lucas said The Agency has been assessing the lucrative Tasmanian market for some time and has undertaken a deliberate selection process, as part of the group’s strategic move to establish a presence in the flourishing market.
“Over the past two years there has been a significant number of mainland buyers flocking to Tasmania, with a view to relocate in future years. Mr Lucas said.
Managing Director of Bushby Property Group, Phillip Bushby, has personally been involved in running of the Bushby business for 50 years.
“After serving the Launceston community for over 100 years and over four generations, this is a significant move for the Bushby Property Group,” Mr Bushby said.
“We have full confidence in The Agency’s ability to continue our legacy and we are delighted to be bringing The Agency business to Launceston and surrounds.”
The move will see The Agency’s network continue to grow, with the company now reaching six states and territories: WA, NSW, Victoria, ACT, QLD, and now Tasmania. The Agency will have circa 400 sales agents and circa 4,800 properties under management following settlement with Bushby which is expected over the next two weeks.
