Rathbone Brothers has acquired 100% of the issued share capital of Speirs & Jeffrey, Scotland’s independent wealth manager Speirs & Jeffrey with funds under management of £6.7bn and 38 investment professionals.
Under the terms of the transaction, Rathbones will pay £104m. The initial consideration for the acquisition comprises £79m in cash – funded from internal cash resources and a proposed £60m equity placing – and the issue of 1.0m new Rathbones shares worth £25m.
The acquisition will enable Rathbones to establish a stronger presence in Scotland. 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.
Further contingent consideration of 0.6m Rathbones shares will be payable dependent upon meeting certain administrative and procedural targets that enable the delivery of cost synergies. Earn-out consideration and incentivisation awards of up to a maximum of a further 5.2m shares will only be payable as operational and financial performance targets are delivered over the medium term.
Philip Howell, chief executive officer of Rathbone Brothers, said: “Speirs & Jeffrey represents an ideal strategic, professional and geographic fit with Rathbones and we look forward to working together both to develop our business in Scotland and deliver compelling returns for our shareholders.”