14th Jun 2018 10:12
LONDON (Alliance News) - Rathbone Brothers PLC on Thursday said it will acquire Scottish wealth manager Speirs & Jeffrey Ltd and raise GBP60 million to part fund the deal.
The London-headquartered wealth manager and investment manager said the acquisition of Speirs & Jeffrey will increase its funds under management by 18% to GBP44.5 billion. Speirs & Jeffrey current manages GBP6.7 billion in funds, making it Scotland's largest independent wealth manager, according to Rathbone.
Rathbone will pay an initial GBP104 million, comprising GBP79 million in cash and 1.0 million new Rathbone shares worth GBP25 million.
The cash element will be funded by internal cash resources and a share placing to raise GBP60 million.
The company will pay further consideration, earn-out payments and incentivisation awards of up to 5.8 million Rathbones shares depending, upon the achievement of synergies, it said.
The deal is expected to be marginally earnings per share accretive to Rathbone in first full year following acquisition, it said. All of Speirs & Jeffrey's current directors and investment managers will be joining Rathbones, and Speirs & Jeffrey CEO Russell Crichton will become the head
of Rathbones' Scottish business.
Speirs & Jeffrey in the financial year to May 10 recorded profit of GBP7.2 million on a revenue of GBP25.3 million.
Rathbone intends to place new shares representing 5% of its existing share capital via bookbuild at 2,500 pence per share. Peel Hunt LLP and RBC Europe Ltd will act as joint bookrunners for the placing.
Shares in Rathbone were trading 0.2% lower at 2,496.00 pence each.
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