Bowmark merges its property services businesses

Alice Murray
17 March 2016

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Bowmark Capital has merged its two estate agent portfolio companies, Leaders and Romans.

The deal was supported with a senior debt facility supplied by ICG, as well as a further £35m to support the newly combined group's acquisition strategy. Bowmark did not supply further capital.

The deal came about through the two management teams, who after developing a relationship with each other were keen to bring the two groups closer together.
The companies have been put together under one holding company but will continue to operate as separate businesses.

Previous funding
Bowmark backed the £48m management buyout of Leaders from property investment business RO Group in March 2010. According to unquote" data, Bowmark invested £21.2m of equity for a significant majority interest in the company, while Lloyds and RBS supplied a £14m senior debt facility.

Bowmark backed the management buyout of Romans in September 2013, acquiring a majority stake in the company in a deal valued at around £50m, according to unquote" data.

Both investments were made via Bowmark's fourth fund.

Company
The newly combined group is a property services business, operating 140 branches in the UK with total revenues of £100m.

The two brands will operate independently of each other, but will seek to combine Leaders' expertise in lettings with those of Romans' in property sales. The merger also enables operational efficiencies.

Leaders was established in 1983 and has predominantly focused on the south of England.

Founded in 1987, Romans was formerly known as Imperial Estate Agents.

People
Bowmark Capital – Mark Salter (partner).
Leaders – Paul Weller (CEO).
Romans – Peter Coles (CEO).

Advisers
Equity – DC Advisory (corporate finance); King & Wood Mallesons (legal); PwC (commerical due diligence, financial due diligence, tax).
Management – Olswang (legal); BDO (tax).
Debt – Fried Frank (legal).