FRP Advisory acquires Hilton-Baird in £7m deal

FRP Advisory Group announced on Monday that it has finalised the acquisition of Hilton-Baird Group, a commercial finance and risk management specialist, for £7m.

The AIM-traded firm said that amount included an estimate of £1.4m for the net assets acquired on completion, and a three-year performance-based earn-out linked to profit exceeding a specified hurdle.

Based in Southampton, Hilton-Baird Group operates nationally, offering a range of services including commercial finance and credit insurance brokerage, outsourced risk and receivables audit, and credit management and commercial debt collection services.

The board said the acquisition was strategic, as it would enable FRP to expand its service offerings and bolster its presence in the commercial finance sector.

With more than 25 years of experience, Hilton-Baird boasted trusted relationships with clients across various industries, including independent lenders, banks, SMEs, corporate businesses, and insolvency practitioners throughout the UK and Europe, FRP explained.

Notably, Hilton-Baird had established itself as a trusted partner for asset-based lenders (ABLs) - a key client group for FRP.

By integrating Hilton-Baird's expertise into its service pillars, including restructuring advisory and debt advisory, FRP was aiming to enhance value for clients, particularly amidst the heightened risk pressures faced by ABL portfolios in the current economic climate.

Post-acquisition, Hilton-Baird would continue to operate under its existing brand within FRP's debt advisory pillar.

Four of the firm's directors, Alex Hilton-Baird, Evette Orams, Graham Bird, and Ian Tramaseur, would join FRP as partners, along with 36 colleagues from the Hilton-Baird team.

Financially, Hilton-Baird reported consolidated unaudited revenues of £4.9m and unaudited reported EBITDA of £1.3m for the year ended 31 December.

Looking ahead, it was expected that Hilton-Baird's contribution to FRP's financials for the current fiscal year ending 30 April 2025 would include revenue of £5.2m and adjusted EBITDA of £1.4m.

“I have worked with Alex and the team for over 15 years and know they share our values,” said chief executive officer Geoff Rowley.

“Their reputation in the market is for hard work, honesty and integrity in providing the highest level of service to clients.

“With a track record of over 25 years, they have built an impressive client base which is testament to the quality of their team and dynamic business model.”

Rowley said FRP was “delighted” to welcome its new partners and colleagues from Hilton-Baird.

“This is our ninth acquisition since admission to AIM in March 2020, demonstrating the continued delivery of our strategy to generate sustainable profitable growth by combining a focus on organic growth with acquisitions that meet the group's selective criteria.

“The combination with Hilton-Baird provides opportunities to support growth across several of FRP's service pillars and I have no doubt they will make a strong contribution to the group, as we continue to grow profitably.”

At 1143 BST, shares in FRP Advisory Group were up 0.12% at 125.65p.

Reporting by Josh White for Sharecast.com.