(Alliance News) - Knights Group Holdings PLC on Friday announced an acquisition to strengthen its presence in the east Midlands.
The legal services firm, based in Birmingham, is to buy Fraser Brown Solicitors, a full-service legal firm located in Nottingham.
Knights will buy the company for up to GBP8.3 million. This is made up of GBP2.8 million in cash on completion and GBP3.0 million in new shares. There will be a deferred cash payment of GBP2.4 million, to be paid in instalments in the first and second anniversaries of completion.
In the year to June 2019, Fraser Brown posted revenue of around GBP7.5 million with a pretax profit margin of approximately 10%.
"We are pleased to announce the agreement to acquire Fraser Brown, one of the largest independent law firms in Nottingham, a key city for business in the East Midlands. With its local and national client base and broad spectrum of work, the combination of Fraser Brown with our existing presence in the East Midlands will position us as one of the leading legal and professional services firms in the region," commented Knights Chief Executive David Beech.
"We are delighted to build on our strong momentum following the three acquisitions announced in the period to date, which is a testament to Knights' ability to attract high calibre businesses to the group," Beech added.
Knights has made a number of recent acquisitions, including fellow Manchester-based real estate law firm Croftons Solicitors LLP earlier February for GBP2.8 million.
In January, it bolstered its presence in Birmingham with the purchase of commercial litigation company ERT Law Ltd for GBP1.8 million, having made another buy in Birmingham in November.
In a separate announcement on Friday, Knights said it has agreed a new GBP40 million revolving credit facility with HSBC Holdings PLC and AIB Group PLC. The facility is split equally between the two lenders and runs to June 2023.
"We are delighted to have agreed this new GBP40 million facility with AIB (GB) and HSBC UK. This will provide us with additional flexibility to further grow our presence across the UK, both organically and through strategically compelling acquisitions, as we continue to enhance the strong growth platform we have developed in key legal markets outside of London," said CEO Beech.
Knights shares were 3.8% higher on Friday morning in London at a price of 460.00 pence each.
By George Collard; georgecollard@alliancenews.com
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