LONDON, UK: RBC Wealth Management (Jersey) Holdings, a subsidiary of Royal Bank of Canada (RBC), has made a recommended all cash offer to acquire Brewin Dolphin Holdings. Under the terms of the acquisition, Brewin Dolphin shareholders will be entitled to receive 515 pence for each Brewin Dolphin Share. The acquisition values the entire issued and to be issued share capital of Brewin Dolphin at approximately £1.6 billion.
Royal Bank of Canada (RBC) is strategically focused on evaluating opportunities to grow its wealth management operations in its core markets namely Canada, the United States and Europe.
The acquisition of Brewin Dolphin represents an exciting strategic opportunity for RBC to combine RBC WMI, its existing wealth business in the UK and the Channel Islands, with Brewin Dolphin to create a market leader with, on a pro-forma basis, £64 billion of assets under management (“AuM”), a combined annual revenue of £545 million for FY2021 and approximately 600 client facing professionals as at 31 December 2021.
The Acquisition is transformational to RBC WMI in the UK, Ireland and Channel Islands and establishes an attractive platform for further growth. Following the Acquisition RBC Wealth Management (“RBC WM”) will have a leadership position in the UK and North America.
RBC highly values Brewin Dolphin’s position as a market leading advice focussed wealth manager in the UK and Ireland with a longstanding record of delivering superior client service.
RBC is also attracted to Brewin Dolphin’s position within the broader UK wealth sector as one of the foremost asset gatherers in a secular growth and consolidating market and its robust investment performance. RBC will combine the strengths of RBC and Brewin Dolphin, provide additional investment and leverage its global capabilities and banking expertise to extend the range of products and services available to meet clients’ needs at any point in their lives from bespoke to digitally-enabled service delivery.
RBC is confident that the excellent strategic fit is supported by complementary client-centric cultures and aligned values that will create an enhanced platform delivering benefits from increased scale and accelerated growth opportunities to all stakeholders. Both businesses place a strong emphasis on integrity and behaviours which support a good organisational culture. The application of these cultural attributes will be key to the continued enhancement of the client and employee propositions.
Commenting on the Acquisition, Doug Guzman, Group Head, RBC Wealth Management, RBC Insurance and RBC Investor & Treasury Services, said: “The UK is a key growth market for RBC, and Brewin Dolphin provides us with an exceptional platform to significantly transform our wealth management business in the region, giving RBC Wealth Management a #3 market position in the UK and Ireland, in addition to being a market leader in Canada, with a growing position in the United States. By combining two highly complementary businesses, we will increase the depth and breadth of our services and position the combined business as a premier integrated wealth management provider to private and institutional clients.
Both management teams are excited by a shared vision of high quality client service, client-centric culture and the exceptional growth opportunities that we can deliver together. We look to continue investing in the combined business and take it to greater heights. We are confident that this Acquisition will deliver benefits to our combined clients, employees and stakeholders.”
Commenting on the Acquisition, David Thomas, CEO, RBC Capital Markets Europe and Head, Wealth Management International, said: “This is a transformative acquisition for RBC Wealth Management and cements RBC’s position as a market leader across multiple business platforms in the UK, the Channel Islands and Europe. We look forward to welcoming Brewin Dolphin’s employees and clients and working together to leverage RBC’s global reach and significant capabilities to create new opportunities for the combined business to grow.”
Commenting on the Acquisition, Robin Beer, Chief Executive Officer of Brewin Dolphin, said: “The Brewin Dolphin Board is pleased to recommend the offer by RBC in the interests of our shareholders, our clients, our people and our business partners. Building on the strong organic growth that we have achieved to date, the combined business will create an attractive platform for future growth. As part of RBC we would be able to provide our clients with a broader range of products and services, and expand our distribution channels through leveraging RBC’s global presence. We share complementary values which emphasise the importance of long-standing client relationships and an inclusive culture supportive of employees and local communities. Our focus will be on maintaining continuity, so that we build on what we have already achieved. I am looking forward to us working together to enhance our market position as a leading advice-focused, digitally enabled wealth manager.”
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