22nd Jun 2015 06:51
LONDON (Alliance News) - Caledonia Investments PLC Monday said it has agreed to acquire the majority of money manager Seven Investment Management for up to GBP77 million.
In a statement, the self-managed investment trust said it will invest alongside Seven Investment Management's management team, which is paying GBP5.0 million for the remainder of the company.
Seven Investment Management is currently owned by Allied Zurich Holdings Ltd and Aegon UK through 7IM Holdings Ltd.
The deal values Seven Investment Management at GBP100 million, with bank debt to pay for the balance of the purchase costs. Caledonia Investments will underwrite the bank debt in the event that it is not in place before completion of the deal.
7IM Holdings made a pretax profit of GBP8.6 million in 2014 and had gross assets of GBP42.9 million at the end of that year.
Seven Investment Management was established in 2002 by Chief Executive Tom Sheridan, Head of Corporate Development Justin Urquhart Stewart, and their Chief Finance Officer Charles Sparrow.
"We look forward to supporting Tom Sheridan and his team in building on 7IM's impressive growth record and strong investment performance to service an expanding UK wealth management market where there is a growing demand for multi-asset and multi-manager funds," Duncan Johnson, Caledonia's Head of Unquoted Investments, said in a statement.
By Samuel Agini; [email protected]; @samuelagini
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