Mattioli Woods plc (AIM: MTW.L), the specialist wealth management and employee benefits business, is pleased to announce it has entered into a binding agreement to acquire 100% of the issued share capital of Hurley Partners Limited ("Hurley"), the private client adviser and asset management business with offices in London, Surrey and Manchester, from its shareholders ("the Sellers") ("the Acquisition").
The total consideration of up to £25.6 million comprises:
Completion is subject to regulatory approval and expected to take place in the second quarter of 2020.
Payment of the initial cash consideration, deal costs and completion price adjustment is expected to result in an estimated cash outflow at completion, net of cash to be acquired, of £8.9 million.
Admission of Consideration Shares
To satisfy the £7.0 million of share consideration, 842,866 Consideration Shares will be issued at a price of 830.5 pence per share at completion. Application will be made to AIM for the admission of the Consideration Shares to trading ("Admission"). Admission of the Consideration Shares, which will rank parri passu in all respects with Mattioli Woods' existing shares in issue, is expected to become effective on completion following regulatory approval.
The Sellers will enter into a lock-in deed with Mattioli Woods and its nominated adviser and broker, Canaccord Genuity Limited, restricting sales of the Consideration Shares during the two years following completion.
Commenting on the Acquisition, Ian Mattioli, Chief Executive Officer of Mattioli Woods, said:
"This exciting acquisition is an important step forward for Mattioli Woods, as we continue to expand our operations. Our discussions with the management team have confirmed the strong cultural fit and our common approach to looking after clients, where the strategy of growing the enlarged Group with the client always in mind clearly resonates.
"Hurley Partners serves a similar client base to Mattioli Woods, with the many complementary elements between our businesses enhancing our specialist pension knowledge, discretionary portfolio management and financial planning propositions. We believe the range of products and services that Mattioli Woods has to offer can support the excellent outcomes from which Hurley's clients already benefit. In addition, there are cost savings to be realised from combining our operations in London and Manchester.
"The Hurley team has a proven ability to win high quality new business and the transaction gives us an exciting new distribution channel for Mattioli Woods' services. Acting with integrity and treating clients as we would wish to be treated ourselves are central to our culture and key to maintaining the long-term multi-generational client relationships that will deliver value for all stakeholders.
"The Acquisition provides a long term, value-accretive opportunity for the Group, despite the broader challenges the market is currently experiencing. Like Mattioli Woods, part of Hurley's revenues are fee-based, rather than being linked to the value of assets under management, administration or advice, giving our combined business a revenue profile that is less sensitive to market performance. Our profit outlook for the year remains in line with management's expectations and I believe this transaction will strengthen our position in a market that is continuing to consolidate".
Tony Hurley, Chairman of Hurley Partners Limited, added:
"This is a highly positive development for everyone associated with Hurley Partners and especially our clients and employees. Putting clients at the heart of everything we do is central to Hurley Partners' culture and we recognise the commitment of Mattioli Woods to this principle. Clients will notice no difference in our approach, which has been built on personal service and clear communication alongside our knowledge and expertise. I am delighted to confirm that all of the employees of Hurley Partners will be remaining with the newly combined group and will continue to operate from our existing locations. The highest level of commitment of all directors and staff remains unaltered. We look forward to working together as part of a strong and progressive wealth management group".
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For further information please contact:
Mattioli Woods plc
Ian Mattioli MBE, Chief Executive Officer
Nathan Imlach, Chief Financial Officer
Tel: +44 (0) 116 240 8700
Canaccord Genuity Limited (Nominated Advisor and Joint Broker)
Tel: +44 (0) 20 7523 8000
N+1 Singer (Joint Broker)
Justin McKeegan, Corporate Finance
Tom Salvesen, Corporate Broking
Tel: +44 (0) 20 7496 3000
Fenchurch Advisory Partners (Financial adviser to Hurley Partners Limited)
Graham Marchant, Senior Managing Director
Tel: +44 (0) 20 7382 2222
Tel: +44 (0) 20 3757 4984