Close Brothers swoops for Cavanagh

Merchant bank Close Brothers has made an agreed bid for Cavanagh Group in a deal that values the AIM quoted independent financial adviser (IFA) at about £26.2m. Close is offering 220p in cash for each Cavanagh share as it pursues its policy of building a high growth wealth and asset management business in the UK. The company bought Bristol-based IFA Chartwell Group in September 2010 and London-based IFA Allenbridge Group in February 2011."This acquisition represents a further step in the execution of our strategy to build a high quality private client offering and to become a leader in UK wealth and asset management. It will significantly extend our asset base and client reach and our capabilities in servicing advice-seeking clients," said Preben Prebensen, chief executive officer of Close Brothers. Cavanagh has eight offices nationwide and employs around 60 advisers. It has private client and corporate assets in excess of £2 billion, of which Close Brothers estimates that some £1.5bn are revenue generating. The proposed transaction is not expected to have a material impact on Close Brothers' earnings in the 2011 or 2012 financial years. ab Close Bros