- Begbies Traynor Group has acquired Pugh Auction Group Limited. The 25 strong team, including management, will be integrated with Begbies Traynor's existing Eddisons property services division. Pugh & Co was established in 2000 and is the largest firm of commercial property auctioneers operating outside of London, with regular auctions held in Leeds and Manchester. The combination of Pugh & Co with the Group's existing Eddisons auction business will become the third largest firm of commercial property auctioneers nationally (based on the total value raised from commercial property auctions in 2015. Source: Estates Gazette January 2016). In the financial year ended 31 March 2016, Pugh & Co reported annual revenue of £2.0 million and pre-tax profits of £0.8 million. It had gross assets of £0.1 million as at 31 March 2016.

The acquisition is for an initial consideration of £2.0 million, to be satisfied in cash from the Group's existing resources. The acquisition is on a cash free, debt free basis. Under the terms of the acquisition, additional contingent consideration of up to £2.625 million will become payable subject to the achievement of stretching financial targets for the consolidated auctions business (representing the existing Eddisons business and Pugh & Co) in the five year period directly following completion, calculated according to an agreed formula. Up to £0.25 million of the contingent consideration is payable based on meeting financial targets in the first year post acquisition and may be satisfied through either the issuing of new ordinary shares at the prevailing market value or cash at the Group's discretion. The remainder of the contingent consideration is payable in cash over the five year period post acquisition.

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