Law firm is on the acquisition trail once again

David Beech

Fast growing law firm Knights has bought Leicester-based Spearing Waite in deal worth up to £8.5m.

For the year ending 31 March 2018 Spearing Waite turned over £7.1m. Knights says the deal will see the company move to eight regional offices and 450 fee earners, increasing its presence in the East Midlands.

Knights, which has offices across the North West, recently acquired Manchester firm Turner Parkinson.

The company is one of the fastest growing law firms in the UK and broke records when it floated on AIM.

The Staffordshire firm was valued at £103m on AIM making it the highest valued lited law firm in the UK.

This summer it secured an undisclosed funding package from Allied Irish Bank to support future growth and acquisitions.

Allied Irish has worked with the Knights Group for over four years and has provided a revolving credit facility together with an acquisition facility to assist with the business’ expansion strategy.

Four of the firm’s shareholders – commercial operations director Mark Beech, facilities director Joanne Beech, Newcastle-under-Lyme office head Karl Bamford and non-executive chairman Balbinder Johal – shared £20m between them as a result of the IPO.

The Spearing Waite name will disappear from January 2019 as the company is rebranded to Knights.

Knights has acquired the equity membership interests of Spearing Waite for consideration comprising £5.25m in cash and 97,208 new shares in Knights, plus deferred consideration of £800,000 in cash (£300,000 payable on 1 October 2019, £250,000 payable on 1 October 2020 and £250,000 payable on 1 October 2021 subject to the Sellers remaining in employment with a member of the Knights group).

Knights will also discharge a maximum of £2m of debt in Spearing Waite on completion, and grant restricted stock awards equivalent to a maximum value of £265,000, resulting in the maximum amount payable not exceeding £8.5.m.

David Beech, chief executive at Knights, said: “We are delighted to be acquiring Spearing Waite, a firm which is culturally aligned with Knights and one we have known for some time.

“They have created a strong reputation in Leicester, as evidenced by their fantastic client portfolio, and I have no doubt that they will be a great addition to our business.”

Tom Bower, senior partner at Spearing Waite, added: “We have grown Spearing Waite to be the best firm in Leicester through brilliant people acting for quality clients.

“To continue our growth strategy we have decided to join Knights plc, a larger business and perfect cultural fit. Knights has the ambition and the financial clout to enable the combined force to continue to thrive in Leicester.

“We can’t wait to get cracking with our ambitious growth plans.”

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