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Brooks' FUM to hit £4.5bn on Arch Cru fund manager buyout
by Sarah Miloudi on Nov 16, 2012 at 07:37
Brooks Macdonald has acquired Spearpoint, a Jersey and Guernsey-based provider of discretionary fund management amd manager of the Arch Cru funds.
The acquisition should be complete by Monday and will see Brooks take on the fund manager, which also has stockbroking and retirement planning capabilities.
Announcing the deal to the stock exchange, Brooks, which is listed on the alternative investment market (AIM), said Spearpoint is considered a leader in integrated wealth management in the Channel Islands and has funds and assets under management of approximately £1.1 billion.
The combined group will have discretionary funds under management of approximately £4.5 billion, excluding advisory, property and third party administration assets.
Part of this process of integration will include the proposed placing of 1,869,566 new ordinary shares, with the aim of raising £21.5 million.
This should cover the bulk of the acquisition cost, which is estimated in the region of £23.1 million.
Speaking to investors about the deal, Chris Macdonald, chief executive of Brooks Macdonald, said the acquisition should immediately enhance the firm's earnings given that Spearpoint reported pre-tax profits of £3.91 million on revenues of £11.42 million for the year ended last December.
Moreover, the acquisition fits with the AIM-listed group's plans for growth.
'The acquisition of Spearpoint is a major step forward and captures an opportunity we have been seeking for a number of years,' Macdonald (pictured) said.
'It adds scale, offshore and international capability together with the acquisition of a strong investment management and pensions team.
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