14th Jun 2018 13:07
LONDON (Alliance News) - Rathbone Brothers PLC on Thursday said it will acquire Scottish wealth manager Speirs & Jeffrey Ltd and has successfully raised 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 the GBP60 million share placing.
Rathbone placed new shares representing 4.66% of its existing share capital via bookbuild completed Thursday of 2.4 million shares at 2,500 pence per share. Peel Hunt LLP and RBC Europe Ltd acted as joint bookrunners for the placing. Major shareholder Lindsell Train Ltd subscribed to 280,000 of the new shares as part of the placing.
Shares in Rathbone were trading 0.1% lower to exactly the placing price of 2,500.00p each Thursday afternoon.
As part of its deal for Speir & Jeffrey, Rathbone 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.
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