24th Jun 2020 10:14
(Alliance News) - Brooks Macdonald Group PLC on Wednesday said it has agreed to buy the Channel Islands wealth management and funds business of Lloyds Bank International Ltd.
Wholly-owned subsidiary Brooks Macdonald Asset Management International Ltd will pay up to GBP9.6 million to acquire Lloyds Investment Fund Managers Limited Ltd as well as assets and clients of Lloyds Bank International Ltd, which is a subsidiary of Lloyds Bank Corporate Markets PLC, in turn part of Lloyds Banking Group PLC.
Brooks Macdonald said an initial amount of GBP9.3 million will be paid in cash from existing financial resources. An additional GBP330,000 will be payable two years after completion dependent on the acquired business meeting certain pre-agreed performance targets relating to the retention of portfolio clients.
In a separate agreement, Brooks Macdonald and Lloyds Bank Corporate Markets will have a reciprocal arrangement whereby the two parties will introduce relevant services to each other's clients.
The deal, covering GBP1 billion in funds under management, increases Brooks Macdonald's international funds under management by up to two-thirds to around GBP2.5 billion, with its pro forma funds under management as at May 31 increasing by up to 8% to over GBP13 billion.
Following completion, the combined business will be based in Jersey and the businesses being acquired will be rebranded as Brooks Macdonald International.
"The acquisition of Lloyds' offshore wealth and funds business brings greater scale, new capabilities and expanded distribution reach. As well as the good strategic fit, our discussions with Lloyds Bank International have shown we have similar cultures with a shared strong focus on clients and intermediaries. This acquisition is a further step forward in achieving our growth ambitions, complementing our organic strategy, creating value for shareholders and bringing benefits for clients and intermediaries," said Brooks Macdonald Chief Executive Caroline Connellan.
Brooks Macdonald shares were trading 0.3% lower at 1,700.00 pence each on Wednesday morning in London, and 17% lower than at the start of the year. Lloyds shares were down 2.8% at 31.84, down more than 50% in the year to date.
By Ife Taiwo; [email protected].
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