Wealth manager AFH completes new acquisition

BROMSGROVE-based AFH has hit the acquisition trail again, adding a Lancashire IFA to its growing portfolio.

The wealth manager has bought in David Rushden Associates in a deal worth almost £300,000. Following the acquisition David Rushden, the vendor, will join AFH.
 
Under the terms of the acquisition, the maximum consideration payable by AFH is £298,125, representing approximately 1.8% of the Funds under Management (FUM). An initial cash consideration of £157,500 has been paid upon completion, raised from the company’s existing cash resources.

A further deferred consideration of up to £140,625 will be payable in cash over the next 26 months in two tranches, dependent upon performance.
 
The acquisition is AFH’s first corporate transaction of the current financial year, which it said was consistent with its strategy of making carefully selected acquisitions which add value to the business.

David Rushden will add approximately £16.5m to AFH’s FUM.
 
Commenting on the deal, Alan Hudson, chief executive of AFH, said: “This acquisition will strengthen our position in the North West and I look forward to working with David to continue the development of AFH in the region.
 
“The acquisition of the assets of David Rushden follows the strategy restated in our recent trading update of making selective acquisitions to develop our expansion nationally and leverage our central investment and support functions.”
 
He said the company continued to seek out high quality businesses of all sizes that fulfilled the group’s growth strategy criteria, while offering attractive returns to shareholders.