Yahoo Finance Rathbones agrees £104m takeover of Scotland's biggest wealth manager Speirs & Jeffrey
FTSE 250 wealth manager Rathbone Brothers has agreed a £104m takeover of Scotland’s largest stockbroker Speirs & Jeffrey.
The deal will partly be funded by a £60m equity raising announced this morning.
It comes amid a flurry of mergers and acquisitions in investment management, as fund managers bulk up to protect profits in the face of stricter regulations and higher costs.
Rathbones’ interest in buying Speirs & Jeffrey was first revealed by The Sunday Telegraph in April.
The deal is subject to regulatory approval. It is expected to close in the third quarter of this year.
Once finalised Rathbones will absorb £6.7bn of assets and 38 fund managers from Speirs & Jeffrey. It will take total assets to £44.5bn.
The historic investment firm, which was founded in 1742, said the takeover of Speirs & Jeffrey would give it a much stronger presence in Scotland, with Glasgow becoming its second largest office after London.
The deal comprises £79m in cash with the balance in shares.
Rathbones said it expected the transaction to boost underlying earnings by at least 8pc and return on investment by 13pc by the third year following completion. The firm also expects to realise cost savings of £6m a year.
Rathbones has been on the acquisition trail for some time and explored a £2bn all-share merger with rival Smith & Williamson last year before talks fell through.
“Speirs & Jeffrey represents an ideal strategic, professional and geographic fit with Rathbones and we look forward to working together both to develop our business in Scotland and deliver compelling returns for our shareholders,” said Philip Howell, chief executive of Rathbones.
