Collins Stewart Boosts Wealth Management Unit With Buy

LONDON (Dow Jones)--U.K. financial advisory group Collins Stewart PLC (CLST.LN) said Thursday it has acquired wealth management firm Andersen Charnley Ltd. and its subsidiary Andersen Charnley Investment Management Ltd. as part of its strategy to grow its wealth management division. Following the acquisition, Collins Stewart's wealth management division will manage and administer GBP6.8 billion of assets. Collins Stewart will pay an initial payment of GBP5 million for the acquisition, of which at least GBP3.5 million is payable in cash. A further retention payment of up to GBP2 million in cash and shares will be paid 12 months after completion based on the retention of ACL's existing assets under management. A deferred payment of up to GBP8 million in cash and shares will be payable based on ACL meeting future revenue targets, Collins Stewart said. -By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; rachael.gormley@dowjones.com (END) Dow Jones Newswires June 17, 2010 02:35 ET (06:35 GMT)