Financial advisory group snapped up by acquisitive listed firm
AFH Financial Group, the financial planning and wealth management firm, has completed the acquisition of Hull-based CTL Three Limited, together with its subsidiaries, for a maximum purchase price of £10m.
The group’s subsidiaries are The Insurance Partnership Financial Services Limited; PCWM Limited; IFA Professional Planning Limited; Private Client Wealth Management (Yorkshire) Limited and Kirk Ella Investments Ltd.
As a result of the transaction, Paul Hodgson, Paul Newman, Shane Beardsley and Victoria Hicks, together with 22 advisers and their support staff, will join AFH bringing over £530m of funds under management.
The initial consideration for the deal will be satisfied by a cash payment of £4.2m, funded from the company’s existing cash resources, and the issue of 26,178 ordinary shares of 10 pence each to Paul Hodgson at 382p.
Alan Hudson, chief executive of AFH, said: “The acquisition of CTL is our third transaction of the year and significantly expands AFH’s national footprint with over 240 advisers working across the UK and over £5bn of FUM.
“At the start of the 2017 financial year, the Board set itself three medium term financial aspirations: FUM of greater than £5bn, revenues of £75m per annum and underlying EBITDA margin of 20% on revenue. The acquisition of CTL takes our FUM to above £5bn and we remain confident of achieving the remaining targets.
“Under Paul and his management team’s leadership CTL has built a strong presence in the North East and I am pleased to welcome Paul and his team to the AFH community.”
Today’s announcement comes just a month after AFL acquired Harrogate-based Premier Wealth Management Harrogate in a £4.5m deal. The Board of FH announced in November that the acquisition had completed. Richard Evans, together with Andrew Huby and Premier’s support staff, joined AFH, bringing over £90m of funds under management to further extend the operations of AFH.
