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Rathbones completes £104m Speirs & Jeffrey buy

Rathbones completes £104m Speirs & Jeffrey buy

Rathbones has completed the £104 million acquisition of Speirs & Jeffrey after receiving regulatory approval.

Rathbones paid an initial lump sum of £79 million to purchase the Glasgow-based firm.

The outstanding balance has been funded by the issue of around 1 million new Rathbone shares to existing Speirs & Jeffrey shareholders, which have been locked up for three years.

The acquisition, which was originally announced on 14 June, sees Rathbones become Scotland's largest wealth manager, with its Glasgow office now its second largest branch across its regional network.

Overall the deal increases Rathbones' funds under management by 18% to £44.5 billion.

In a letter to clients, Speirs & Jeffrey outlined why it had been forced to sell what was Scotland's oldest wealth business to Rathbones.

A subsequent Wealth Manager investigation revealed a group of eight Speirs & Jeffrey directors who were in line for bumper payouts on the back of the deal.

'Speirs & Jeffrey represents an ideal strategic, professional and geographic fit with Rathbones and we look forward to working together both to develop our business in Scotland and deliver compelling returns for our shareholders,' Rathbones CEO Philip Howell (pictured) said when the deal was announced.

Rathbones expects an underlying earnings per share accretion of 'at least 8%' and a return on investment of around 13% in the third year following the completion of the deal.  

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