AIM-listed Mercury Group has not exercised its option to buy London- and Manchester-based agent Lee Baron.
Mercury Group, which provides a range of professional services, bought Smith Melzack Pepper Angliss in March and announced it had agreed an option to buy Lee Baron. The option lapsed on 31 May.
Lee Baron chief executive Carl Whayman said: “This was through no fault of Lee Baron nor any issues or problems encountered, but rather because of issues relating to the terms and timetable. We may well work together in the future.”
Mercury chairman David Williams said: “We were under a very demanding timetable and were unable to achieve mutually agreeable terms. I was not prepared to overpay.”
Lee Baron made a pretax profit in 2004 of just over £1m up from £465,547 in 2003 on group turnover of £8.85m up from £6.5m. Whayman said the firm had enjoyed “a screamingly good” 2005 first quarter and was “confident of further profit growth”.
