LONDON, UK: Brooks Macdonald Group has entered into a binding agreement to acquire 100% of the issued share capital of Cornelian Asset Managers Group Limited, the Edinburgh based independent wealth and asset manager from its shareholders, including senior management.

The total net consideration is expected to be up to £39 million, with initial consideration being £31 million, of which £22 million will be paid in cash and £9 million in Brooks Macdonald shares.

A further contingent cash consideration of up to £8m is payable depending upon Cornelian meeting certain pre-agreed performance targets relating to the retention and growth of client assets as well as the realisation of cost synergies. Completion is expected to take place in the first quarter of 2020 subject to regulatory approval.

The Group separately announced this morning an equity placing to raise gross proceeds of approximately £30 million which will be used to fund the cash element of the consideration for the acquisition.

Caroline Connellan, Chief Executive of Brooks Macdonald, commented: “From the outset of our discussions with Cornelian, we have been struck by the complementary cultures, investment processes and business models of the two firms, with both having a strong focus on clients and intermediaries. We are delighted that we have been able to agree a transaction that brings additional multi-asset capability and distribution strength into the Group. The transaction creates value for our shareholders and crucially will provide benefits for both firms’ clients and the intermediaries with whom we work. The acquisition of Cornelian is a significant step forward in our medium-term strategy of delivering sustainable, value-enhancing growth.”

Jeremy Richardson, Chief Executive of Cornelian, commented: “Throughout our discussions with Brooks Macdonald, we have been impressed by their strong client focus and growth aspirations. It has been client and intermediary support over many years that has enabled us to build a successful business. Therefore, it was important to us to find a company with a similar culture and investment philosophy, and critically one that we were confident would provide the highest levels of service to our clients and intermediary supporters. We are very pleased to be joining Brooks Macdonald.”