LONDON: FRP Advisory Group plc, a leading national specialist business advisory firm, announced the acquisition of Lexington Corporate Finance for a consideration of £3 million plus an additional amount for the net assets acquired on completion of approximately £0.5 million.
The total consideration for the acquisition is split between cash of approximately £2.2 million and the issue of new ordinary shares with a value of approximately £1.3 million.
The Group’s first acquisition in Wales, Lexington is based in Cardiff and provides corporate finance services to clients both locally and nationwide. One of the firm’s Directors and Founder, Gary Partridge, will join FRP as Partner. All other members of the Lexington team will also join FRP, including 14 colleagues.
For the year to 30 April 2024, Lexington’s consolidated unaudited revenues were £2.3 million and unaudited reported EBITDA was £0.6 million. On an annual basis going forward it is expected that Lexington’s underlying incremental contribution to FRP will be revenue of c. £2.7 million and adjusted1 EBITDA of c. £0.7 million; although within any financial year, there will be timing volatility depending on when transactions complete.
The acquisition is in line with FRP’s strategy to generate sustainable profitable growth by combining a focus on organic growth with acquisitions that meet the Group’s selective criteria. This approach enables the Group to increase market share, broaden its service offering to clients and expand its geographical footprint. The acquisition is the Group’s tenth since IPO in March 2020.
Geoff Rowley, CEO of FRP Advisory said: “Wales was a target region for FRP and this acquisition further strengthens our National Corporate Finance business. The team will go to market locally as FRP Corporate Finance.
We are pleased to welcome Gary and the team to FRP; they share our values and I have no doubt will make a strong contribution, as we continue to grow.”
Gary Partridge, founder of Lexington, said: “We are delighted to be joining FRP Corporate Finance and are excited at the opportunities that being part of FRP presents for our team and our clients. We are all immensely proud of what we have achieved as a team at Lexington over the past nine years and being part of FRP will be a launch pad to enable us to offer a broader range of services to our clients.
We are confident that by building upon our shared values of quality and professionalism with FRP, we will accelerate our growth.”.