Charles Stanley has completed the sale of its pensions division EBS Management to Embark Group in a deal worth up to £4 million.
The agreement, which has now received regulatory approval, will see Charles Stanley receive an initial cash consideration of £2 million, with two further payments of £1 million apiece dependent on the future revenues of EBS. The division made a profit of £300,000 over the year to the end of March 2017 and had total net assets of £1.7 million.
Following the deal, EBS will operate as a standalone unit of Embark, but use its technology and systems. Charles Stanley and Embark will become ongoing partners for future Sipp and SSAS business.
Commenting on the deal in April, ahead of it receiving regulatory approval, Charles Stanley CEO Paul Abberley (pictured) said: ‘We are delighted with this transaction. It is simultaneously right for all stakeholders of the EBS business, present and future, and most importantly the underlying consumers. We look forward to a long commercial partnership with the team at Embark.’
Embark CEO Phil Smith said at the time: ‘The nature of the EBS business fits perfectly with our long-term plans. It has excellent people, one of the best-managed books of business in the Sipp industry, and high quality anchor distribution clients. It offers excellent value to us, and with our digital and technical capabilities, EBS will trade profitably going forward.’