Wealth manager Brewin Dolphin has agreed to buy Duncan Lawrie Asset Management (DLAM) for an initial cash payment of £25.5m
Brewin said the deal would enhance its adjusted earnings in year one and thereafter and would take the group’s total funds under management to £36.1bn.
The deal, which will also include a payment to reflect the value of net assets in the business of around £2.5m, would be financed through its internal cash resources, which stood at £171m at the end of the company’s financial year as at 30 September 2016, Brewin said.
As part of the transaction, DLAM’s investment team of 11 investment managers and 8 investment support staff are expected to join the London (17 employees) and Bristol (2 employees) offices of the group.
The team, which will continue to be led by Seth Cowburn, manages funds of approximately £735m (based on their value as at 30 September 2016) on behalf of approximately 1,000 client relationships. Approximately 84% of these funds are managed on a discretionary basis.
Completion of the deal is expected to take place during the first half of 2017 and si subject to certain regulatory approvals.
David Nicol, chief executive, said: “DLAM is a high quality investment management business and the acquisition is an excellent fit for us given the shared business philosophy centred on a personalised approach to client service. The transaction demonstrates the attraction of Brewin Dolphin to wealth management professionals and clients who value traditional, personalised services coupled with an innovative, forward looking approach.”