Australian law firm snaps up RJW

RUSSELL Jones & Walker, the London-based personal injury and employment law specialist, is to be acquired by Australia’s first publicly-listed law firm, Slater & Gordon Lawyers, for £53.8m.

RJW, which has a major call centre at its Charlotte St offices in Manchester selling volume legal insurance products for businesses and consumers , said the deal is expected to complete in April, subject to regulatory approval.

Russell Jones & Walker’s chief executive Neil Kinsella argued that the deal would bring security and growth to the business.

“We will continue to deliver first class legal services, but as a result of today’s announcement we will have the resources and backing to develop and grow,” Mr Kinsella said.

“We want to become the largest and most trusted provider of personal legal services in the UK.

“Our commitment to making justice and legal services accessible and affordable to all remains, but our ability to do this increases as a result; this development will bring real benefits to our clients and affiliated organisations.”

Slater & Gordon has said that the deal includes RJW’s Claims Direct claims management brand and that it expects the deal to be earnings-accretive from its first full year. It is predicting that the RJW/Claims Direct busineses will achieve ebitda of £10m on sales of £53m in its next financial year of 2012/13.

Mr Kinsella said becoming part of Slater & Gordon will provide a wider pool of talent and knowledge.

“In Slater & Gordon we have found the perfect partner; a firm with a similar history and ethos to RJW. We are also joining a firm focussed on innovation and one which is ahead of the pack in terms of its corporate and business structure.

“Slater & Gordon publicly listed five years ago which gives us a five-year head start on any UK firm considering this option.”