RSM Tenon merger completes

ACCOUNTANCY group Tenon has completed its merger with smaller rival RSM Bentley Jennison in a £76.3m cash and shares deal.

Tenon shareholders approved the deal at a general meeting yesterday and the group has now changed its name to RSM Tenon.

The firm paid for the acquisition with a £40m placing of new shares at 45p each. In addition shares worth £17.5m were issued to the shareholders of RSM Bentley Jennison and a deferred cash consideration of £18.8m will be paid over the next three years.

Dealings in the new shares commenced on AIM at 8.00 this morning and completion of the acquisition was to occur immediately following their admission.

A further £9m in cash and shares may be paid, “dependent on the realisation of contingent assets in RSM Bentley Jennison of at least equal value”.

The deal makes RSM Tenon the seventh largest accountancy firm in the UK with 50 offices and 3,000 staff.

Tenon, which has a North West turnover of £39m and around 570 staff, said it expects to make cost savings of around £6.3m in the first year, as a result of the acquisition.

Both firms have offices in the region with Tenon based in Manchester, Bolton, Chorley, Preston and Rochdale, and Bentley Jennison running its North West interests from Manchester.

In the year to June Tenon reported an operating profit of £19m on turnover of £150.8m. RSM Bentley Jennison generated revenue of £71.3m in year to September and operating profit of £9.6m.