Close Brothers pays £26m for Cavanagh
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Close Brothers is acquiring national IFA firm Cavanagh in a £26.2m deal.
Close will pay 220p per share for the listed firm which has around 60 advisers and private client and corporate assets of over £2bn. Cavanagh estimates that around £1.5bn of assets generate revenue.
Close says the Cavanagh brand will be dropped after a transition period.
Cavanagh chief executive Andrew Fay, managing director Simon Redgrove, director Neil Millard and group sales and marketing director Charles Gillespie as well as a number of other employees have agreed to exchange 50 per cent of what they are entitled to under the deal for Close shares.
Fay will be appointed Close Asset Management head of wealth management business development, Redgrove head of personal advice and Gillespie head of corporate advice.
Fay, Redgrove and Millard have agreed to hold their Close Brothers shares for at least three years and Gillespie has agreed to hold his shares for at least 18 months.
The move follows Close Brothers’ £17m acquisition of Bristol-based Chartwell Group in September 2010 and All- enbridge Group in February for £5.6m.
The latest deal will take the total number of advisers in subsidiary Close Asset Man- agement to 116.
It is understood that Close Brothers is looking to fur- ther increase its scale through organic and acquisition growth.
Chief executive Preben Prebensen says: “This acquisition represents a further step in the execution of our strategy to build a high quality private client offering and to become a leader in UK wealth and asset management.”
Cavanagh chairman Paul Sinnett says: “The acquisition of Cavanagh by Close Brothers represents the logical next step in the continued development of the Cavanagh business and it will benefit both our clients and employees.”
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