Mattioli Woods buys MC Trustees for £2.2m
Wealth management and employee benefit provider Mattioli Woods bought MC Trustees, which includes Old Station Road Holdings and its subsidiaries, for up to £2.2m.
Financial Services
16,554.54
17:14 13/11/24
FTSE AIM All-Share
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16:50 13/11/24
Mattioli Woods
802.00p
17:15 02/09/24
Mattioli Woods’ initial consideration of £1.2m, which is subject to adjustment for the value of net assets, comprised of £950,000 in cash plus 38,081 new ordinary shares of 1p each, which is expected to come to about £250,000 on admission to AIM on 14 September.
Up to £1m in cash will be payable in the following two years subject to financial targets on growth in earnings before interest, tax, depreciation and amortisation (EBITDA).
Payment of the initial cash consideration, deal costs and estimated net asset adjustment resulted in a cash outflow of £1.38m.
The AIM-listed company said the acquisition of the pension administrator is expected to be earnings enhancing and it would retain MC Trustees’ management team.
In the year ended 31 December 2015, MC Trustees generated profit before tax of £400,000 on revenues of £1.6m and its net assets were £300,000.
Ian Mattioli, chief executive of Mattioli Woods, said: "This acquisition is another important step forward for Mattioli Woods, as we continue to expand our operations. MC Trustees is a great fit culturally and strategically, serving a similar client base to our existing business, while complementing our current operations in the East Midlands.
"The MC Trustees team has a proven ability to win high-quality new business and the transaction gives us an exciting new distribution channel for Mattioli Woods' services. I believe this will strengthen our position in a market that is continuing to consolidate."
Martin Cadman, MC Trustees' managing director, added: "We are excited to become part of the Mattioli Woods group and believe this transaction benefits our clients, employees and partners."
Mattioli Woods said it had also reached an agreement “in principle” to buy MC Holdings Malta, a subsidiary, for up to £600,000 in cash and shares. This acquisition is subject to approval of the Malta Financial Services Authority.
MC Trustees entered into a lock-in deed with Mattioli Woods and its nominated adviser and broker, Canaccord Genuity, to restricting sales of the consideration shares for the next two years.
Shares in Mattioli Woods were up 3.58% to 680p at 0834 BST.