LSL Property Services buys stake in Group First

LSL Property Services has acquired a 65% interest in Group First Limited for £9.1m in cash.

The deal, which is being funded from existing banking facilities, was done through a wholly-owned subsidiary, with 50% payable on completion and a further 50% in 2017.

It includes put and call option provisions which if exercised would increase LSL’s investment in GFL to up to 100%.

The company said the additional consideration payable for the remaining shares would be calculated on an earnings multiple of between five and six times EBITA plus excess cash in the business and is capped at a maximum of £25m.

Chief executive officer Ian Crabb said: “This investment supports LSL's strategy to grow long term profitability in the provision of residential property services in the UK, by identifying value enhancing opportunities.

“Further, the investment strengthens LSL's relationships with its key housebuilder clients."

GFL provides mortgage and protection brokerage services to the purchasers of new homes through its subsidiaries, Mortgages First Limited and Insurance First Brokers Limited.

At 1535 GMT, LSL shares were up 1.9% to 270.50p.