Lancashire wealth manager sold for up to £8.3m
A LANCASHIRE wealth management and employee benefits company has been snapped-up by an acquisitive listed rival for up to £8.3m.
Preston-based Taylor Patterson is being bought by AIM-listed Mattiolo Woods as part of its continuing growth drive.
Taylor Patterson was founded in 1979 and provides wealth management and employee benefits services to a broad range of personal and corporate clients. Led my managing director Gillian Bardin, who led a management buyout in 2006, it employs 38 staff.
Its management team will be retained by Mattioli Woods following the deal.
The Leicestershire-based acquirer is paying an initial consideration of £5m (subject to adjustment for the value of net assets acquired), comprising £2.5 million in cash and 419,888 new ordinary shares of 1 pence each in Mattioli Woods, which are valued at £2.5m based on the closing price of a Mattioli Woods share on 8 September 2013, plus deferred consideration of up to £3.3m in cash in the three years following completion if certain financial targets are met based on growth in revenues and earnings before interest, tax, depreciation and amortisation generated during that period.
Mattioli Woods said the vendors – Taylor Patterson’s management team – had entered into a lock-in deed restricting sales of the consideration shares during the three years following completion.
In the year ended 31 July 2015, Taylor Patterson generated a profit before taxation of £900,000 on revenues of £3.21m. Taylor Patterson’s consolidated net assets were £790,000 at 31 July 2015.
Ian Mattioli, chief executive of Mattioli Woods, said: “This acquisition is an important step for Mattioli Woods, as we continue to expand our operations. Taylor Patterson is a great fit culturally and strategically, serving a similar client base to our existing business, while expanding our geographic footprint into the North West.
“The Taylor Patterson team has a proven ability to win high-quality new business and the transaction gives us an exciting new distribution channel for Mattioli Woods’ services. I believe this will strengthen our market position and is an exciting step forward in the development of Mattioli Woods as a broader wealth management business”.
Gillian Bardin added: “We are all very excited about this next chapter in the Taylor Patterson story. As we have got to know the team at Mattioli Woods, we know we share the same culture and values in building long-term relationships with clients and professional introducers. We are looking forward to continuing to deliver clear, flexible and high-quality, client-focused financial solutions, while introducing the new possibilities that being part of the Mattioli Woods Group brings.”
Headquartered in Enderby, Leicestershire, Mattioli Woods has offices in Aberdeen, Buckingham, Glasgow, London and Newmarket and advises more than 6,000 clients with assets under management, administration and advice in excess of £5 bn.
Over the past decade Mattioli Woods has acquired 15 businesses.
