UK estate agent Chestertons acquired by European group

UK estate agent Chestertons has been acquired by Emeria, a private equity-backed European real estate services and technology group. According to a source close to the deal who was quoted in reports, Emeria will pay around £100 million for the firm, which would represent approximately a 7.3x multiple of Chesterton’s £13.7 million underlying EBITDA for 2022.

Chestertons, which was founded in 1805, making it one of the UK’s oldest estate agencies, has been undertaking a protracted turnaround process after being acquired out of receivership by Mercantile Group in 2005. Mercantile subsequently combined Chestertons with Humberts in 2009, after buying most of the latter firm out of administration, before splitting the brands once more in 2014.

Mercantile’s ownership has seen considerable growth at Chestertons, which is focused on sales and lettings of upmarket London homes. The company has expanded from nine to 30 UK branches and operates globally in 12 other countries. In its most recent accounts, the UK business reported £70 million in turnover, compared to under £17 million following its acquisition in 2006 and up 28 per cent from £58.3 million in 2021.

Mercantile Chairman Salah Mussa said that the acquisition “demonstrates how we have transformed from a struggling small agency, into a thriving, resilient business”.

However, the deal also comes amid a period of considerable pressure on the UK’s property sector, with rising mortgage costs as a result of high interest rates. After reaching highs during the COVID-19 pandemic, house prices have fallen over recent months and Zoopla says that the housing market is set for its slowest year in over a decade.

These challenges have prompted considerable M&A activity and consolidation. Prior to Emeria’s acquisition of Chestertons, UK property portal OnTheMarket was subject to a bid of around £100 million from US real estate firm CoStar. London estate agency Foxtons, meanwhile, has said that it is aiming to acquire rival estate agencies as it looks to expand its lettings business amid falling house sales and increasing residential rents.

Emeria’s acquisition of Chestertons will see the company, which is backed by Swiss private equity firm Partners Group, acquire Chestertons’ UK operations, with Mercantile remaining the owner of its international operations.


In a recent report, the UK was ranked as the top destination in Europe for inbound M&A for the second consecutive year

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