Rathbones adds £6.7bn with Scottish wealth giant acquisition

Rathbone Brothers Plc has announced the acquisition of Glasgow-based Speirs & Jeffrey, Scotland’s largest independent wealth manager with funds under management of £6.7bn in a £104m deal.

The acquisition, which is subject to regulatory approval will increase Rathbones’ pro forma funds under management by 18% to £44.5bn. Speirs & Jeffrey currently has 38 investment professionals and around 8,500 clients.

Rathbone Brothers said in a statement that the deal consists of an initial consideration of £104m comprising £79m cash (funded from a combination of internal cash resources and the proceeds of a proposed £60m equity placing separately announced this morning) and the issue of 1 million new Rathbones shares worth £25m.

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. Rathbones’ Glasgow team will combine with Speirs & Jeffrey to consolidate Rathbones’ existing Glasgow presence, the statement said

Rathbones has been growing its core private client discretionary investment management business “both organically and by acquisition” and the acquisition of Speirs & Jeffrey will enable Rathbones to establish a much stronger presence in Scotland, with Glasgow to become the group’s largest office after London following the transaction.

Strategic
“From the outset of our engagement, both teams have recognised how compatible they are in culture, investment philosophy and dedication to client service,” said Philip Howell, CEO of Rathbones.

“Speirs & Jeffrey represents an ideal strategic, professional and geographic fit with Rathbones

Graham Waddell, chairman of  Speirs & Jeffrey sad that the deal represents “a significant milestone” for S&J but undoubtedly the right one for our clients and our people.

“The fact that our team will remain intact and that our clients will continue to receive the same exacting standards of personal service, whilst benefitting from the wider resources of Rathbones, fills me with great confidence for the future,” he said.

The acquisition is subject to approval by the FCA and is expected to complete in the third quarter of 2018.