Glasgow-headquartered Newton Property Management has acquired full ownership of PMC Property Management, an established factoring business headquartered in Oldmeldrum, Aberdeenshire. PMC manages a portfolio of over 10,000 properties and generates annual revenues of around £1.5 million.
The transaction, which received FCA regulatory approval in June, strengthens Newton’s presence in north-east Scotland and is expected to make it the region’s largest property factor, with approximately 17,000 properties under management in the area.
Across Scotland, the acquisition will increase Newton’s portfolio from just under 40,000 to almost 50,000 properties under management, making it one of the country’s largest property factors.
PMC Property Management will continue to trade under its existing brand, supported by Newton’s wider operational resources and customer service standards.
PMC co-owner, Neale Bisset, will join Newton working within the business development team led by board director, Rachel Littlejohn, while his co-owner, Annette Hudson, is retiring.
Vincent Goldie, Chief Executive Officer at Newton Property Management, said: “This is a landmark moment for Newton Property Management and, by a considerable margin, the largest acquisition we have ever completed.
“Over the past three years, we have grown from managing just under 30,000 properties to managing almost 50,000. This transaction represents another major step in our ambition to become both the biggest and the best property factor in Scotland.
“Growth must never come at the expense of service. Existing Newton customers will continue to receive the high standards they have come to expect, while PMC customers will benefit from our clearly defined customer service commitments including our 24/7 emergency helpline. Our increased scale should create opportunities to broaden our contractor network and improve procurement efficiency over time.”
The deal comes following a period of significant growth and improvement for Newton Property Management, with the acquisition expected to increase Newton’s annual group revenue to approximately £9.5 million during the first year of ownership and the company having recently obtained a Customer Service Excellence accreditation.
Neale Bisset, co-owner at PMC Property Management, said: “The cultural alignment between our two organisations was an important factor in our decision to sell to Newton Property Management. Its approach to looking after both customers and employees, together with its high standards of customer service, made it a natural fit for the business.
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“I’m looking forward to working with the Newton team as we build on the service our customers already receive and begin the next chapter for the business in the north-east of Scotland.”
Freeths advised on legal due diligence and the acquisition documents for Newton and Raeburn Christie Clark & Wallace for PMC, AAB on financial due diligence, with the Bank of Scotland providing financial support.
Stephen Owens, relationship director at Bank of Scotland, said: “We’re delighted to welcome Newton to Bank of Scotland, and to be supporting such an ambitious Scottish business. Newton has built a strong foundation with a clear vision, and we’re really pleased to have provided financial backing supporting this acquisition.”
