Private equity house Alchemy Partners will launch a review of agency Lambert Smith Hampton as part of its investment in parent group Countrywide, and is likely to keep the business rather than push through a sale.
Alchemy has agreed to take a majority stake in Countrywide. A prospectus for the £90m deal was published today.
An earlier announcement of the transaction suggested confusion over the future of LSH. Countrywide has accounted for the business as a discontinued operation held for sale since late 2019 and said it will be sold by the end of this year. However, Alchemy said its plans for Countrywide included “expanding geographic and service line[s]” in LSH.
In the prospectus for the deal, Alchemy committed to those plans. The document added: “Alchemy intends to review the categorisation of LSH as an asset held for sale with the expectation that it may stay in the group.”
The prospectus also offered an update on the cancelled £38m sale of LSH to John Bengt Moeller. The deal fell apart after the buyer missed several deadlines by which to complete the acquisition.
Countrywide filed a claim against Moeller in the High Court on 24 September for repudiatory breach of the deal agreement, seeking damages and costs. Moeller confirmed on 7 October that he intends to defend the claim.
“The timing of any future hearing or trial… will be subject to a number of factors, including court availability,” said the Countrywide prospectus. “The total value of the claim cannot currently be quantified but is valued at more than £10m.”
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