LONDON: RBG Holdings plc announced the acquisition of the business of Memery Crystal LLP, a leading legal provider, for a total consideration of £30.0 million.
The acquisition is in line with the Group’s M&A strategy set out in its Admission Document. This strategy aims to focus on high-margin professional companies, like Memery Crystal, which also create opportunities for the cross-referral of business.
Nicola Foulston, CEO of RBG Holdings, commented: “Today’s acquisition of Memery Crystal is another significant step in the Group’s development. Memery Crystal is a complementary fit with our existing law firm, RBL. We believe the acquisition will be transformative in terms of the scale of our business. Memery Crystal is a very successful firm, which combined with our commercial focus on margin and cash, can be even more profitable.”
Nick Davis, CEO, Memery Crystal, added: “As a firm, we are excited to be joining RBG. For Memery Crystal, it is very much business as usual. We will be retaining our own management and brand identity along with our distinctive partner-led culture. Memery Crystal and RBL will naturally complement each other as part of the Group’s Legal Division. The strength of the combined Group will mean we can offer enhanced to clients and provide a stronger entity for staff to develop their careers.”
RBG aims to grow its service offering to clients and diversify its revenue through the acquisition of complementary businesses in the professional space. Its ambition is to create a broad, high-quality, high margin professional group with a focus on specialist companies which can also create opportunities for cross-referrals.
The Board will only consider acquisitions which it feels represent an appropriate price and deal structure. Memery Crystal is a very exciting acquisition which will be immediately earnings enhancing, which RBG believes has the potential to generate significant value for shareholders over the long term.
The Group will remain disciplined in its approach to M&A and continue to review potential opportunities according to its selective criteria.
Memery Crystal was founded in 1978 by John Memery and Peter Crystal. At the date of exchange, the Firm has 146 employees, including 29 partners, and an additional 66 fee earners.
Based in London, Memery Crystal offers legal in a range of areas such as Corporate (including a market-leading corporate finance offering), Real Estate, Commercial, IP & Technology (CIPT), Banking & Finance, Tax & Wealth Structuring, Employment and Dispute Resolution. Memery Crystal is one of the leading firms in the UK to advise the emerging cannabis sector on a wide range of business issues.
The Firm offers a partner-led service to a broad range of clients, from multinational companies, financial institutions, owner-managed businesses to individual entrepreneurs. The Firm has transacted in over 100 jurisdictions and has been recognised in numerous categories in the latest Chambers UK and Legal 500 UK rankings.
In the year ended 30 April 2020, Memery Crystal had unaudited revenue of £23.2 million and profit for the year (before members remuneration and profit share) of £8.0 million.
RBG has conditionally agreed to acquire Memery Crystal for total consideration of £30.0 million comprising (upon completion) £12 million in cash, £11.2 million in RBG shares and a further £6.8 million in cash deferred over two payments on the sixth and 12-month anniversary of completion.
Completion of the Acquisition is conditional upon, inter alia, regulatory approval.
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