Countrywide latest: Connells’ big plan to turn behemoth around
Connells says there may be some head office and central admin job losses, but that these will be kept to a minimum.
Connells has revealed its plans for Countrywide now that its acquisition has been given by green light by a majority of Countrywide’s shareholders and its board.
“The Connells Board believes that the acquisition will allow the enlarged Connells Group to provide a more integrated suite of services and enhance its value proposition to customers, especially in the business to consumer segment, while building a stronger and more efficient branch network,” says Connells.
“As a result of its due diligence review, sector knowledge and management expertise, Connells envisages that the business of Countrywide would continue to operate materially in the same way without significant disruption to either the Connells or Countrywide businesses once Countrywide has been fully integrated with Connells.
“Connells’ primary motivation for the Acquisition is to invest in and grow the Countrywide business.
“Based on Connells’ knowledge of Countrywide and existing presence in the UK estate agency sector, Connells believes that there will inevitably be some duplication of operational infrastructure between the two businesses where efficiencies may be achievable.”
Head count
Areas where ‘duplication’ and therefore job losses/relocations at Countrywide are likely include across some head office and central administrations functions, while Connells expects to streamline IT services across the two companies as well as “listing, administrative and other related operational expenses”.
Connells says any employee reductions will be subject to comprehensive planning and engagement with employees and consultation with employee representatives as required by applicable law.
“Any affected employees will be treated in a fair and equitable manner consistent with Connells’ culture of respect,” it says.
“Other than the above-referenced head office and centralised administration functions, there are no specific identified potential cost savings which would involve a material reduction of employee headcount.”
No changes to the Countrywide network are planned.
