Mattioli Woods subsidiary City Pensions Limited has acquired Ashcourt Rowan’s pension administration business in a deal worth up to £1.3m.
Under the deal, City Pensions will acquire the trade and certain assets of Ashcourt Rowan Administration Limited, plus pension trustee companies Ashcourt Rowan Pension Trustees Limited and Robinson Gear Management Services.
The businesses provide trustee and admin services to more than 600 Sipps and 150 SSASs, with funds under trusteeship of more than £300m.
Mattioli Woods will pay an initial sum of £700,000, plus a deferred payment of up to £625,000 subject to certain revenue and client retention targets being met during the five years following completion.
In the year to 31 March 2012, ARAL generated a post-tax profit of £134,535 on revenues of £674,285. The estimated liabilities being acquired are £115,168.
Sipp and SSAS clients will continue to receive portfolio management and financial planning services from Ashcourt Rowan Asset Management and Ashcourt Rowan Financial Planning.
Mattioli Woods chief executive Ian Mattioli says: “We anticipate there will be further opportunities to expand Mattioli Woods’ operations, both organically and by acquisition.”
FSC Investment Services managing director Frank Cochran says: “Mattioli Woods clearly thinks Ashcourt Rowan has an attractive business available at a decent price.”