Knights continues acquisition drive with £12.5m deal
Knights has announced that it has agreed to acquire West Midlands law firm Thursfields Legal in a £12.5m deal.
The acquisitive firm has grown significantly in recent years and now has more than 1,400 staff. This latest deal with Thursfields takes the number of acquisitions since Knights’ IPO in 2018 to 21.
Its strategy of making “selective, considered acquisitions” is set to double the size of the business in the medium term.
Founded in 1878, Thursfields is an independent, full-service regional law firm with offices in Worcester, Kidderminster, Solihull and Birmingham.
With a strong private wealth offering, the 101 fee earners will strengthen Knights’ existing capabilities and presence in the West Midlands.
In its unaudited accounts for the year ended 30 April 2024, Thursfields reported revenue of £11.2m and a profit before tax margin of circa 25%. Following the full integration of the firm, Knights board says it expects Thursfields to contribute a profit before tax margin of circa 30%.
Under the terms of the acquisition, Knights will purchase the firm from its ten shareholders on a debt free, cash free basis, for a total consideration of c.£12.5m. This will begin with an initial cash consideration of £7.5m and then a deferred cash consideration of £5m to be paid in three equal instalments on each of the first, second and third anniversaries following completion. The cash consideration will be satisfied from Knights’ existing banking facilities. Completion is expected to take place on September 14.
David Beech, CEO of Knights, said: “We are delighted to acquire Thursfields, a premium, full-service law firm which shares many cultural and operational similarities to Knights, and significantly strengthens our position as a leading legal and professional services business in the Midlands.
“With particular strength in Private Wealth, it further enhances our expertise in an important and growing part of our business, which will support our future growth plans.
Michelle O’Hara, Managing Partner at Thursfields commented: “Knights is a business with a similar ethos to Thursfields, with a strong culture which cultivates collaboration across its offices, to the benefit of client service.
“We look forward to working closely with the team and leveraging Knights’ scale, reputation and extensive capabilities, to unlock our future growth potential.”
