(Alliance News) - Rathbone Brothers PLC said Thursday it has completed the acquisition of CastleCo Ltd, the holding company of the professional services-focused financial planning business Saunderson House.
The initial part of GBP138.4 million for the acquisition was paid through GBP133.1 million of cash - including repayment of GBP45.0 million of debt - and the issue of 272,952 new Rathbones shares to Saunderson House management and employee sellers.
The wealth manager noted the shares are valued at GBP5.2 million, with a fixed price of GBP19.13 each.
Shares in Rathbone Brothers were 1.4% higher in London on Thursday morning at 2,026.08 pence each.
After admission of these shares, Rathbone's issued share capital is 62.0 million.
Rathbones has also agreed to pay deferred consideration of GBP14.9 million on the first anniversary of completion - on top of the initial GBP138.4 million. This will comprise GBP10.9 million in cash and GBP4.0 million to be paid in new Rathbones shares.
When the deal was first announced in June, Rathbone noted Saunderson has GBP4.7 billion of funds under management. Therefore, Rathbone said the acquisition of Saunderson further strengthens its financial planning capability and enhances its ability to offer a more holistic wealth management proposition to clients when appropriate.
By Paul McGowan; paulmcgowan@alliancenews.com
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Rathbone (RAT)