Property consultant Eddisons has strengthened its auctions division with the acquisition of the UK’s largest auction house outside London, North West-based Pugh & Co, for an initial £2m cash sum, rising to £4.6m if targets are achieved.
Newton le Willows-based Pugh & Co was founded in 1991 and turns over £2m from its regular auctions held in Manchester and Leeds. Managing director Paul Thompson led management buyouts of the business in 2008 and 2014.
The acquisition will see Eddisons’ auction division operate under the Pugh & Co brand, led by Thompson.
The two companies sold a combined £100m of property at auction last year. The merged operation will have 36 staff.
Eddisons is headquartered in Leeds and has 12 UK offices. Managing director Richard Roe said: “Pugh & Co is the perfect fit for Eddisons’ own property auctions division and together we now have the capacity to run the largest commercial property, residential property and land auctions in the North.
“The popularity of auctions as a speedy, transparent and reliable method of buying and selling property continues to grow and this acquisition, of a successful and highly respected auctions business, will be a massive boost to Eddisons’ capability in this area.”
Paul Thompson said: “It’s great news that our firm is now part of Eddisons. Combining our strengths will enable us to offer an unrivalled service to clients, with an excellent geographic spread and depth of professional expertise and experience.”
The total deal value could reach £4.6m if the combined business achieves “stretching financial targets” over the next five years.
Eddisons is part of Begbies Traynor Group.