Towry agrees £97m takeover of listed wealth manager
TOWRY FINANCE has agreed a £97m takeover of listed wealth manager Ashcourt Rowan.
The firms, which have operations in Yorkshire, said the combination is expected to create one of the top 20 players in the UK private wealth market, with £11bn of assets under management.
Shares in Ashcourt, which has offices in Leeds and York, rose 56.3% yesterday on the back of the announcement.
Ron Sandler, chairman of Towry, said: “The combination of the Towry and Ashcourt Rowan businesses will bring an exciting opportunity to create one of the largest companies in the UK private wealth management sector. Our highly complementary business models will deliver significant client benefits, providing access to a broader range of services and investment solutions.
“Ashcourt Rowan has developed into a high quality business following a period of reorganisation and with a strong cultural fit, the combined entity will be well positioned to take advantage of further growth opportunities as the market continues to evolve.”
Ashcourt Rowan chairman Hugh Ward added: “We are pleased that our recent discussions with Towry have been concluded positively and that the loyalty shown by our shareholders has been rewarded by this offer for Ashcourt Rowan. Our executive team has worked tirelessly to execute a recovery of Ashcourt Rowan’s position since joining in late 2011 and effecting the placing in December 2011.
“The offer price of 275 pence per Ashcourt Rowan Share represents a fair price for the business, is a 4.7 times increase in the market capitalisation of the Ashcourt Rowan Group since 1 December 2011 and is testament to the dedication, passion and drive of all our staff. I believe that the combined entity will be well placed on completion to benefit from the growth dynamics of the wealth management industry over the coming years and provide an outstanding platform for key professionals in the sector.”
Towry is owned by private equity firm Palamon Capital Partners and manages or advises on more than £6bn in assets. It employs around 800 staff across 20 offices, including an operation in Leeds.
Ashcourt Rowan manages or has under influence over £5bn in assets, of which £2.3bn are on a discretionary or managed basis, from 16 offices in the UK with around 340 staff.
