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Towry set to buy Ashcourt Rowan for £97m

Towry has reached a deal to buy Ashcourt Rowan for £97m, the wealth management firm has announced.

Under the terms of the deal, Ashcourt Rowan shareholders will receive 270p per share, plus 5p in loan notes.

The Ashcourt Rowan directors intend to unanimously recommend its shareholders vote in favour of the deal.

Subject to regulatory approval, the acquisition is expected to go ahead in three months’ time.

Ashcourt Rowan provides wealth management and employee benefit consultancy services, and manages or has influence over £5bn in assets, of which £2.3bn is on a discretionary or managed basis. The firm has 340 staff and 16 offices in the UK.

Towry manages £6bn in assets and has 22,000 clients. It has around 800 employees from a national network of 20 offices.

Towry says that on completion of the deal, it will conduct a full review of the combined business to identify any cost efficiencies, including the overlap in office locations and business activity. It says this will lead to some redundancies. 

Towry chairman Ron Sandler says: “The combination of the Towry and Ashcourt Rowan businesses will bring an exciting opportunity to create one of the largest companies in the UK private wealth management sector.

“Our highly complementary business models will deliver significant client benefits, providing access to a broader range of services and investment solutions.”

Ashcourt Rowan chairman Hugh Ward says: “We are pleased that our recent discussions with Towry have been concluded positively.

“The offer price of 275p per Ashcourt Rowan Share represents a fair price for the business, is a 4.7 times increase in the market capitalisation of the Ashcourt Rowan Group since 1 December 2011 and is testament to the dedication, passion and drive of all our staff.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. One wonders to just what extent, if any, Ashcourt Rowan’s employees regard their present employer’s business model as being “highly complementary” with that of Towry Law. For a start Ashcourt Rowan is an Independent FA firm (“Perhaps most importantly, our advisers are entirely independent. That means that they can construct the appropriate recommendations for your circumstances, and not be restricted to certain brands or product types.”) whereas Towry isn’t. So, when the latter acquires the former, something pretty fundamental will have to give and, for Ashcourt Rowan’s clients and employees, it won’t be business as usual going forward.

    On the strength of what happened to employees of other companies acquired by Towry (here’s your new contract of employment ~ sign it in two weeks or else), I imagine most will be reviewing their CV’s and checking what other job openings are out there.

  2. E L Wisty (an only twin) 2nd February 2015 at 10:44 am

    I understand that Jonathan Polin and the rest of the Board have given unconditional undertakings to support this take over; which, as Julian Stevens says, is unlikely to be well received by staff or clients (at least those who value ‘independent’ advice.

    It would be interesting to know whether a business sale was Polin’s agreed objective when he was appointed and if he regards 630,500 pieces of silver as ample payment?

  3. Take The High Road 2nd February 2015 at 11:32 am

    Ah….another big advisory firm bought out by the even more bloated TL.

    Personally, I don’t see the significance of claiming to be an IFA as being any better than a ‘Restricted’ adviser since most medium-larger IFA’s have some sort of centralised investment process where many of the day to day investment decisions are made by single investment manager/DFM or a small committee and the original IFA/Adviser then has little influence over!!

    What will no doubt be interesting is whether the sale actually proceeds through a ‘full’ share purchase. If it doesn’t then of course, it becomes an asset sale and staff will be transferred over under a ‘TUPE’ arrangement and their employment contracts cannot be changed.

  4. “The combination of the Towry and Ashcourt Rowan businesses will bring……..

    ….another £5billion to the Towry platform and misery and pain to clients and staff at Ashcourt Rowan.

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