Wealth manager Rathbones is to acquire CastleCo, the holding company of the Saunderson House group. The acquisition, subject to approval by the Financial Conduct Authority, is expected to complete in the third quarter of 2021.
Saunderson House, a UK-based wealth management advisory business, focuses on clients in London and the South East, serving 2,200 high-net-worth clients with an average portfolio size of £2.2m.
According to Rathbones, the acquisition will strengthen its financial planning capability, increasing its in-house team from 25 to 80 and funds under management and administration from £3.7bn to £8.3bn.
The transaction totals £150m. This will comprise an initial cash and share consideration of £135.1m, including repayment of debt, structured as £130.2m in cash and £4.9m in new Rathbones shares payable at completion.
Rathbones has also agreed to pay deferred consideration of £14.9m on the first anniversary of completion. This will comprise £10.9m in cash and £4m to be issued by way of new Rathbones shares.
For more details of the transaction click here.
Rathbones is being advised by RBC Capital Markets (financial adviser and joint corporate broker) and Addleshaw Goddard (legal adviser).
Saunderson House is being advised by Fenchurch Advisory Partners (financial adviser) and Macfarlanes (legal adviser).