Spicerhaart has confirmed its acquisition of large regional firm butters john bee, as reported by EYE yesterday.
The price has not been disclosed.
The deal takes the number of Spicerhaart branches to over 200 and employee headcount to over 2,000.
The management team at butters john bee will remain the same, led by managing director James Beardmore, and the business will continue to trade under its current name.
Spicerhaart was at pains to say that the acquisition underlines Spicerhaart’s commitment to the traditional high street agency model and is the first of several planned acquisitions.
Paul Smith, Spicerhaart’s CEO, said that he is actively looking to acquire other successful brands with a £20m war chest. He made it clear he is not interested in any online firms.
Butters john bee joins other brands in the Spicerhaart Group which are currently haart, Felicity J Lord, Darlows, Chewton Rose and Haybrook, as well as mortgages business Just Mortgages.
Butters john bee has 19 offices, all offering estate agency, lettings and financial services, across Staffordshire, Shropshire and the west midlands.
The agency is a regional market leader in both the residential and commercial property space and was recently named Best Regional Agency Group at the ESTAs for the third year running.
Butters john bee was founded in 1856 by Charles Butters in Hanley, Stoke on Trent, and is one of the oldest estate agents in the UK. The agency’s HQ remains in Stoke.
The deal sees Spicerhaart expand its operations into the west midlands and north-west where it has not had a presence, as well as boost the group’s expertise in commercial surveying and auctions.
Spicerhaart said it is particularly interested in acquiring successful brands across the south coast, London, Bristol, the west midlands and Manchester, as well as areas where Spicerhaart has a presence.
Spicerhaart said its recent survey of over 2,000 consumers found that more than 90% of people would like to see the high street agency model continue.
When asked what they deem as the most important quality for an estate agency, 60% said having someone you can trust, 46% said knowledge of the local area and 35% said having a branch with people that you can speak to face-to-face.
Paul Smith said: “I am delighted to welcome the butters john bee family to the Spicerhaart Group. The agency has a strong heritage and an excellent track record.
“We do not believe in robotic internet models and are sticking true to our roots of traditional high street estate agency.
“There will always be a place for well-run local estate agents, and having a local agent with expert knowledge of the local area remains important for both buyers and sellers when it comes to dealing with their most valuable asset.”
James Beardmore said: “We are incredibly excited to be joining the Spicerhaart Group and to start a new chapter in our long history.
“We have been working across the region for 150 years, and pride ourselves on being local experts and a trusted brand.
“The size, strength and ambitions of the Spicerhaart Group are evidence that high street agencies are still the preferred option for the majority of buyers and sellers.
“I look forward to seeing the Spicerhaart Group and butters john bee continue to grow in the years to come.”
Congratulations to Paul Smith on his commitment to pursuing the traditional, tried and tested business model. I share his confidence and would not contemplate racing to the bottom with a view to ultimately running a business without profit. All the attributes that Paul highlights should continue to prove successful.
If only the rest of the bunch could recognise that that they are shooting themselves in both feet by trying to compete with a low/no profit model, instead of maintaining and improving the traditional version where experience, honesty and excellent service are worth paying for – merely needing to be delivered to the client with a bit more conviction.
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seeing as online model needs about £700 in marketing to produce a £750 fee, its a no brainer. The marketing is trying to force behavior , a good idea doesn’t need forcing.
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What numbers are you – or someone else – basing that “£700 in marketing” figure on, Bless You?
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I found it on a pick it out of thin air like the online agents do, calculator. It always gives me the answer i want..clever stuff.
And if you report me to the asa,,i will of course, settle the matter without any further action and have a bottle of champagne. #mugs
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Thanks for that. I was simply wondering at what level of listings does a cost of £700/property become anywhere near reality.
I would suggest that, so far, no-one has managed it by a long chalk.
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Shut the front door! I agree with something Paul Smith said/did!!!!
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Well done, a good deal that will add value to all concerned.
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Respect to Mr Smith
At last an estate agency CEO who understands that the pre-deal payment model is likely to be a short term corporate event designed to max out share value profit for the few rather than a long term operating profit?
What would happen to those no sale, no fee disruptors if the Government wisely decided to ban pre-deal agency fees next?
Have any of the Guild members who have signed up to easyproperty considered this as a possibility? Stay firm.
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Hi ,
What do you mean by pre deal agency fees?
What makes you think that the government is even considering banning them.
I just don’t see any government getting involved in a restriction of trade issue.
kind regards,
Andrew Watt
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I have seen some pretty spurious straw clutching from some seemingly paranoid estate agents on this forum over the years but this is well and truly the funniest, made my day.
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A perfect fit for this agent both in terms of how BJB/ SHG do their business and how it also fits within the companies current footprint.Excellent to see an intelligent acquisition and solid investment in offering “proper Estate Agency”
Good luck to all involved.
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ARC Consider:
How many agents bet on a tenancy fee ban?
Pre-on line only – how many sellers paid a fee for failure?
Post on line only – how many 1000s of sellers now pay £100s if not £1000s for failure?
How many sellers now pay two agency fees?
How many on line only sellers truly understand that they pay the same for success of failure?
If you bought a new computer and it did not work as a retail customer you are entitled to ask for your money back.
Why should many on line only sellers be treated differently?
With no pre or post sale financial incentive chains are being weakened by lack of attention to detail?
If all agents had to provide No sale, No fee ….as an optional choice…. it may help to overcome many of these issues?
If you wished to protect the consumer from pre-deal fees – what would you do?
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It’s very noble of you to think for the masses and protect them from the horrible hordes trying to rip them off!! Or is it the horrible hordes threatening your market share you’re worried about!!
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ARC charging up to 50% of sellers the same fee for success of failure is not a viable long term business model in a service sector?
If any of these models refuse to reveal to users how many pay for a service they do not receive through their company (not including completions through other agents) I cannot see that the regulators or indeed Government have any other choice but to insist they offer no sale, no fee, at least as an option?
If you were a regulator or policy maker would this now be your industry priority number ONE?
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Thanks for asking but no it wouldn’t my top three in order would be:
1) Chronic under supply of good quality and affordable housing.
2) Estate Agents lack of transparency over their fee with some clients being charged one percent and another a different one because the agent was a bit more desperate for instructions that day so pulled his pants down.
3) Letting agents charging tenants hundreds of pounds for a 5 minute credit check that costs £2. (I admit this is in the pipeline to an extent.)
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