The Caledonia Investment trust has acquired a 94 per cent stake in Seven Investment Management (7IM).
The deal, which is still subject to regulatory approval, values the business at over £100m, including £25m of bank debt.
The investment trust will invest £77m in cash to acquire 94 per cent of the company from Zurich Holding and Aegon UK. The debt will be underwritten by Caledonia.
7IM was set up in 2002 by Justin Urquhart Stewart and Tom Sheridan. The company has about £9.5bn in assets under management.
7IM will become the trust’s fourth largest holding, making up 4.7 per cent of its portfolio. The trust has a history of substantial involvement in wealth management. Close Brother has been one of the trust’s largest holdings for many years and makes up 3.4 per cent of its portfolio.
