Chinese firm seals €150m Goodbody buyout

A Chinese consortium led by investment firm Zhongze Group is set to buy Irish wealth management and stockbroking firm Goodbody for an estimated €150m.

The consortium is also joined by private investment company Pioneer Century and China’s sovereign wealth fund’s wholly-owned asset management company, JIC Trust.

The Chinese buyers will take complete ownership of Goodbody from current 51% owner, Fexco, and Goodbody staff and management who own the balance of the business.

The sides have been in talks to acquire Ireland’s oldest and second-largest stockbroker since the start of the year.

In a statement, both companies said Goodbody will continue to operate from and be headquartered in Dublin. Managing director Roy Barrett and the senior management team will remain in place.

Goodbody will also retain its brand and staff and will continue to be regulated in Ireland. Backing from the Chinese investors will help fund expansion in Ireland and the UK and provide Goodbody’s clients access to a new corporate and institutional partnership network in China, the firm added.

“It [the deal] also facilitates the creation of a bridge from east to west and vice-versa for institutional capital seeking opportunities in both regions,” said Barret.

Goodbody’s management are predicted to share about €60m in cash and earn-outs from the takeover.

The transaction is subject to regulatory approval and is expected to close by end of this year.

Goodbody has a history dating back more than a century. It was acquired by Irish provider of financial transaction Fexco in 2011 for €24m from Allied Irish Banks during the financial crisis.

ABOUT THE AUTHOR
Pedro Gonçalves
Pedro Gonçalves is Financial Correspondent at International Investment.

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