TIDMBRK
RNS Number : 7017E
Brooks Macdonald Group PLC
14 April 2014
14 April 2014
BROOKS MACDONALD GROUP PLC (the "Group")
Acquisition of DPZ Capital Limited
Expansion of International division
Brooks Macdonald Group plc ("the Group"), the AIM listed
integrated wealth management group, today announces that its wholly
owned subsidiary, Brooks Macdonald Asset Management (International)
Limited ("BMI"), has acquired DPZ Capital Limited ("DPZ") from DPZ
Holdings Limited.
Highlights:
-- Acquisition of Jersey based DPZ for an initial consideration
of GBP5.7m, made up of GBP3m in cash and the issue of New Ordinary
Shares in the Group at a value of GBP2.7m. The total consideration
payable by the Group will not exceed GBP13m, which includes c.GBP1m
of net current assets.
-- Significant expansion of, and enhancement of the skills and
offering of, the Group's international and offshore division.
-- Expected to be earnings enhancing in the full year to June 2015.
-- Increases pro forma discretionary funds under management by GBP360m to GBP6.04bn.
About DPZ:
DPZ is a well-established wealth management business based in
Jersey which was founded in 2007. It manages a range of distinct
investment strategies founded on its core competencies: asset
allocation, manager selection, fixed interest and credit investing,
and equity selection. Funds under management since DPZ's inception
have grown rapidly and, as at 31 March 2014, DPZ had c.GBP430m of
funds, c.GBP360m of which is managed on a discretionary basis,
c.GBP60m of which is managed on an advisory basis and c.GBP10m is
managed on an execution only basis
Consideration:
Should the full value of DPZ funds under management transfer to
BMI, based on their value as at 31 March 2014, the consideration
would be, in total, GBP10.8m (excluding net current assets).
The consideration will be satisfied by an immediate cash payment
of GBP3m together with a payment of New Ordinary Shares in the
Group to the value of GBP2.7m. The number of shares issued will be
based on an agreed price of 1706.4 pence per New Ordinary Share. A
further payment in cash of GBP2.4m will be paid in October 2014.
These three elements together, totalling GBP8.1m, represent 75% of
the total consideration.
Based on the value of DPZ's funds under management at 31 March
2016, a cash payment will be made comprising the total
consideration due at that date less the upfront consideration
already paid.
All of the cash payments will be financed from the Group's
internal resources and the exact number of shares issued by the
Group as part of the upfront consideration will be separately
announced.
Reasons for and benefits of the acquisition:
The Group's stated strategy has been to build on the successful
integration and growth of its international division, BMI, which
was acquired in 2012, with further expansion of the international
team and its capabilities, thereby strengthening its offering and
accelerating its growth rate. Since acquisition, BMI has grown its
funds under management and has increased the size of its team by 15
staff. The acquisition of DPZ is consistent with furthering this
growth strategy.
The acquisition will increase the Group's international presence
significantly, with an increase in discretionary funds under
management managed out of the Channel Islands of over 50%. In
addition, DPZ brings additional skills to the business, which are
expected to prove valuable routes to growth. First, the Group
intends creating a new Fixed Income offering based on the existing
DPZ team who have been very successful in the asset class.
Secondly, the Group will create a new Platform Team reflecting the
success of DPZ's International MPS solution enabling this offering
to be expanded further.
Integration plans:
The Group has an established integration track record following
its successful integration of the Braemar Group in 2010 and
Spearpoint (BMI) in 2012.
As a result of the acquisition, the Group will be welcoming to
BMI a talented and committed team of professionals with extensive
experience. The combined business will be located at BMI's existing
Jersey offices and will be branded as BMI.
Chris Macdonald, Chief Executive of Brooks Macdonald Group
commented:
"This is a very exciting acquisition for the Group in line with
our strategy to expand our international division based in Jersey.
DPZ is a high quality asset management business that has strong
investment management and cultural synergies with the Group. As
well as adding scale to our international business DPZ bring a
highly talented investment management team and additional skills to
expand our offering. We very much welcome DPZ into the Group."
Darren Zaman, Chief Executive of DPZ Capital Limited
commented:
"We are very excited to be joining Brooks Macdonald. We believe
that by combining with BMI we will become part of the leading
investment management business in the Channel Islands and look
forward to contributing to a strong and fast-growing international
investment business that will bring many benefits to our clients
and staff."
Enquiries to:
Brooks Macdonald Group plc
Chris Macdonald, Chief Executive 020 7499 6424
Simon Jackson, Finance Director
Canaccord Genuity
Bruce Garrow /Joe Weaving 020 7523 8350
MHP Communications (on behalf of Brooks Macdonald)
Reg Hoare / Barnaby Fry / Simon Hockridge / Giles Robinson 020 3128 8100
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQUAUNRSBASAAR
Brooks Macdonald (LSE:BRK)
Historical Stock Chart
From Jun 2024 to Jul 2024
Brooks Macdonald (LSE:BRK)
Historical Stock Chart
From Jul 2023 to Jul 2024