Financial services firm and tax adviser Montpelier Group has bought the RST Group for a price believed to be around £1.5m following tense negotiations over net liabilities.
Industry sources suggest that the group negotiated the price down from almost £2m to £1.5m for the accountancy company, which has coverage across the North of England and Scotland.
RST employs over 100 people at offices in Preston, Thornton Cleveleys, Penrith, Workington, Carlisle, Dumfries, Castle Douglas, Newton Stewart, Richmond and Sheffield.
Montpelier says the acquisition is part of its continued expansion plans, both in the UK and internationally. The firm offers tax and financial planning advice. It has 24 IFAs in the UK, producing a turnover of £18m and has just reported £5m profits for 2006.
The group says the acquisition will enhance its offering from a geographical point of view. Montpelier says the purchase of RST will form part of its plans for rapid development through both acquisition and organic growth.
The firm expressed an initial interest in Millfield last May and is still listed as a shareholder of the collapsed group with a 15 per cent stake.
Montpelier Financial Services managing director David Yelloly says: “This is a dynamic move forward for our company and we are all looking forward to working closely with the RST Group which will assist in the further development and extension of financial services which we are able to offer to existing and new clients throughout the UK.”