View the article online at http://citywire.co.uk/wealth-manager/article/a407617
Collins Stewart acquires Andersen Charnley for £5 million
by Matthew Goodburn on Jun 17, 2010 at 08:08
Collins Stewart, has confirmed the acquisition of Andersen Charnley and its subsidiary Andersen Charnley Investment Management Limited (ACL).
The acquisition, first reported by Citywire last week, sees the Channel Islands based firm acquire ACL, an independent private client wealth manager offering discretionary portfolio management and independent financial advice.
ACL which focuses on the upper end of the high net worth market will cost Collins Stewart an initial £5 million, of which a minimum of £3.5 million is payable in cash with the balance to be paid in ordinary shares of Collins Stewart.
The group said that a further retention consideration of up to £2 million in cash and shares will be paid 12 months after the completion of the deal based on the degree of retention of ACL's existing assets under management.
Collins Stewart expects to pay around 2.0% of ACL's assets under management for ACL's discretionary management business.
Deferred consideration of up to £8 million in cash and Shares will be payable based on ACL meeting future revenue targets, paid for from both incremental management fees and non-management fee income. Collins Stewart said it had the option of paying up to £7 million of this deferred consideration in Shares.
For the year ended December 2009, ACL generated revenues of £5.3 million, and profits before tax of around £0.8 million.
Its investment management subsidiary, Andersen Charnley Investment Management Limited manages assets of £357 million, 96% of which are on a discretionary basis.
Chris Loynes, the founder of ACL, will remain as a consultant to the business for at least two years following completion, and ACL's senior management and key staff have signed up to Collins Stewart's terms of employment.
The acquisition gives Collins Stewart's Wealth Management division a total of £6.8 billion in assets from its offices in London, Guernsey, Jersey, Isle of Man and Geneva. Around £2.5 billion are in discretionary assets.
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