TIDMBRK
RNS Number : 2705E
Brooks Macdonald Group PLC
27 February 2020
27 February 2020
Brooks Macdonald Group plc
Notice of completion of acquisition of Cornelian and issuance of
shares
Brooks Macdonald Group plc ("Brooks Macdonald", the "Group" or
the "Company") is pleased to announce that the pre-conditions to
the acquisition of Cornelian Asset Managers Group Limited
("Cornelian"), including receipt of approval from the Financial
Conduct Authority, have been satisfied.
The only outstanding condition is admission of 453,172 ordinary
shares (the "Consideration Shares") to trading on AIM to settle
part of the upfront consideration. An application has been made to
the London Stock Exchange for the Consideration Shares to be
admitted to trading on AIM which is expected to take place at 8am
on 28 February 2020, at which point the acquisition will
complete.
Caroline Connellan, Brooks Macdonald Chief Executive,
commented:
"I am delighted to announce that we expect to complete our
acquisition of Cornelian tomorrow, having received regulatory
approval. Our experience of working with our new colleagues over
recent months has reinforced our belief in the complementary nature
of the two businesses.
"We look forward to welcoming Cornelian's clients and
intermediaries and ensuring that both firms' clients benefit from
the broader range of products and services of the combined group.
The acquisition of Cornelian is a significant step forward in our
strategy of delivering sustainable, value-enhancing growth."
Cornelian senior team
As part of the acquisition, the Group is delighted to welcome
new colleagues who will bring additional skills and experience to
complement the existing team, including the Cornelian senior
team:
-- Jeremy Richardson, CEO of Cornelian, will continue to play an
important role in the coming months, supporting the transfer of
Cornelian clients to Brooks Macdonald, whilst simultaneously
ensuring Cornelian remains focused on delivering the very best
service to its clients and professional connections
-- John Jackson, currently MD Intermediary Business at
Cornelian, will join Brooks Macdonald as Director of Products &
Propositions, and will work closely with our business heads to
ensure our offering meets our clients' and advisers'
expectations
-- Marcus Brooks, currently Director Private Clients &
Charities at Cornelian, will report into Robin McAdam, Head of our
Scotland Office, as Senior Investment Director
-- Hector Kilpatrick, Cornelian's Chief Investment Officer will
join the Group CIO team as Senior Investment Director, reporting to
Richard Spencer, Group Chief Investment Officer
-- Regina Jackson, Cornelian's Operations and HR Director, will
lead the integration from the Cornelian perspective, working
closely with Group Chief Operating Officer, Jason Wood.
Shares in issue and total voting rights
Following admission of the Consideration Shares to trading, the
number of ordinary shares in the Company in issue and number of
voting rights will be 16,125,831. This figure may be used by
Shareholders as the denominator for the calculations by which they
will determine whether they are required to notify their interest
in, or a change to their interest in, the Company under the
Financial Conduct Authority's Disclosure Guidance and Transparency
Rules.
Enquiries to:
Brooks Macdonald Group plc www.brooksmacdonald.com
Caroline Connellan, CEO 020 7499 6424
Ben Thorpe, Finance Director
Peel Hunt LLP (Nominated Adviser and Broker)
Guy Wiehahn / John Welch 020 7418 8900
MHP Communications
Reg Hoare / Simon Hockridge / Charlie Barker 020 3128 8734
Notes to editors - Brooks Macdonald
Brooks Macdonald Group plc, through its various subsidiaries,
provides leading investment management services in the UK and
internationally. The Group, which was founded in 1991 and began
trading on AIM in 2005, had discretionary funds under Management of
GBP13.1 billion as at 31 December 2019.
Brooks Macdonald offers a range of investment management
services to private high net worth individuals, pension funds,
institutions, charities and trusts. The Group also provides
financial planning as well as offshore investment management and
acts as fund manager to a regulated OEIC providing a range of
risk-managed multi-asset funds and a specialised absolute return
fund.
The Group has thirteen offices across the UK and the Channel
Islands including London, East Anglia, Hampshire, Leamington Spa,
Leeds, Manchester, Taunton, Tunbridge Wells, Wales, Scotland,
Jersey, and Guernsey.
Notes to editors - Cornelian
Cornelian is an independent, well-established and profitable
wealth management business, with 39 staff including 12 investment
professionals, based in Edinburgh. As at 30 September 2019, it had
GBP1.4bn of FUM(1) , all managed on a discretionary basis. Its
investment offering includes two ranges of multi-asset OEIC funds
and segregated discretionary portfolios. It operates a centralised
investment team with distribution and servicing separated into two
segments:
-- Intermediated business (GBP0.9bn(1) at 30 September 2019):
principally distributing Cornelian's successful fund ranges through
financial advisers
-- Direct business (GBP0.5bn(1) at 30 September 2019): dealing
principally with private clients (GBP0.4bn(1) ) but also with small
books of charity and pension fund business (together accounting for
GBP0.1bn(1) ), all with direct client relationships
Cornelian has a track record of delivering growth with total FUM
increasing by GBP0.75bn(1) since 2014, representing an annual
growth rate of 17%, driven predominantly by multi-asset funds sold
through intermediaries. It has more than doubled its revenue during
the same period , although the business saw modest net outflows in
2019, in line with weaker client sentiment reflected across the
sector. Based on its management accounts for the year ended 30
September 2019, Cornelian generated revenue of GBP10.3m(1) and an
EBITDA of GBP3.4m(1) in the year.
[1] Based on audited Cornelian accounts for year to 30 September
2019
Notes to editors - s trategic rationale
Cornelian's business is complementary to the Group's existing
discretionary fund management activities and will further
strengthen its existing investment management, client, and
intermediary expertise. The acquisition is a significant step
forward for Brooks Macdonald's stated strategy of delivering
sustainable, value-adding growth.
Cornelian's c.450 direct clients and the c.500 financial
advisers through which it distributes its multi-asset funds range
will benefit from the Group's broader product and service offering.
The direct clients will benefit from financial planning and see
continuity of their investment manager relationship. All clients
will benefit from the combined research resources and broader
platform of the enlarged Group.
Integration planning has progressed well while we awaited
regulatory approval, and the Group remains confident that the
acquisition will deliver material levels of both cost synergies,
driving the estimated underlying EPS accretion of 9% in the first
full financial year following completion, as previously announced,
as well as revenue synergies that will contribute further to
medium- and longer-term growth.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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