Integrated wealth management group Kingswood has acquired Thomas & Co Financial Services, an Oxfordshire based financial advisory firm, for £3.3m.
The deal is worth a maximum cash consideration payable of £3.3m, made up of an initial cash payment of £1.5m and a further deferred sum of maximum £1.8m. The latter is subject to the achievement of revenue and profitability metrics over a three-year period.
For the year to 31 December 2017, Thomas & Co generated a profit before tax of £460,000. The acquisition is expected to be immediately earnings accretive to the Group, with future income growth anticipated from additional revenue enhancement and cost synergies.
Kingswood told IFA Magazine that the acquisition is another major step in its strategy to become a leader in the UK wealth and investment management market and build a nationally recognised brand. It follows the acquisition of Independent Financial Advisers Marchant McKechnie in October 2018 and illustrates, said Kingswood, its ability and commitment to convert its strong pipeline of deals into accretive additions to the Group.
Based in Abingdon, Oxfordshire, Thomas & Co offers a wide range of services to its clients, including personal and company pensions, investments, and tax planning. Thomas & Co serves around 500 clients and has approximately £150m of assets under advice. The principals and staff of Thomas & Co, who will join the Group as part of the Acquisition will continue to operate from its existing office in Abingdon.
Kingswood now has more than 4,500 active clients, and AUM/AUA of £1.9bn.
Kingswood also announced the launch of its enhanced Managed Portfolio Service.
Gary Wilder, Group Chief Executive, Kingswood, said: “Our integrated wealth and investment management platform provides Kingswood with a strong competitive advantage and enables us to drive growth initiatives under a common brand. Our strategy remains firmly focused on seeking opportunities, domestically and internationally, to drive growth in revenue and assets under management and advice, through acquisition and by attracting best in class wealth and investment talent to the Kingswood platform. We have a strong pipeline of opportunities we are currently evaluating. Access to products such as our enhanced Managed Portfolio Service, which we have also announced today, as well as the rigour and discipline of our investment process, makes us an attractive partner to firms such as Thomas & Co. I want to welcome the excellent team at Thomas & Co to Kingswood, and we look forward to working with them.”
Joe Berry, Founder and Principal of Thomas & Co, added: “Kingswood is a very similar firm to us, with a strong commitment to protecting client’s wealth and providing first-class advice, with the emphasis on face-to-face personal service. They also give us access to an array of innovative investment products and services beyond those readily available to our private clients.”