Brewin Dolphin to buy asset management business for £28m

19th Dec 2016 07:13

(ShareCast News) - Investment manager Brewin Dolphin has agreed to buy Duncan Lawrie Asset Management for £25.5m along with a payment of £2.5m.The acquisition of Duncan Lawrie, which is the subsidiary of the private banking arm of London-listed Camellia and has £735m of funds under management, is expected to be completed by the first half of 2017 subject to regulatory approval.Brewin said it expected the addition to enhance earnings after the first year, while, on a pro forma basis, its funds under management is anticipated to increase to £36.1bn.Brewin's chief executive, David Nicol said the acquisition "is an excellent fit for us given the shared business philosophy centred on a personalised approach to client service. The transaction demonstrates the attraction of Brewin Dolphin to wealth management professionals and clients who value traditional, personalised services coupled with an innovative, forward looking approach."The transaction is to be financed from the company's cash resources, which stood at £171m at the end of September.As part of the deal Duncan Lawrie's team of 11 investment managers and eight investment support staff are expected to join the London and Bristol offices of the Group, and will continue to be led by Seth Cowburn, who funds of about £735m on behalf of some 1,000 clients. About 84% of these funds are managed on a discretionary basis.The yearly direct pre-tax profit related to the asset management is expected to be about £4.8m, while Brewin's ongoing costs as a result of acquiring the business, will be up to £1.1m and its non-recurring project and transaction costs are anticipated to be about £2m.Cowburn, head of wealth management at Duncan Lawrie Asset Management, said: "Brewin Dolphin's financial planning, research, infrastructure and investment management expertise will considerably enhance the service we can offer, and we see the sale to Brewin Dolphin as a very positive development for both the clients and the investment management team."