Wealth manager Towry has completed the acquisition of Ashcourt Rowan, it announced today.
In February, Towry agreed to buy wealth management firm Ashcourt Rowan for £97m. In a stock exchange announcement following this, Towry said it will pay Ashcourt Rowan shareholders £2.70 in cash for each share plus 5 pence as a principal amount of loan notes.
But amid concerns over whether the deal would receive backing from shareholders, Towry said on 12 March it had upped its offer. Towry increased its offer for Ashcourt Rowan by 24 per cent to £120m, meaning Ashcourt Rowan shareholders will receive £3.33 in cash plus a principal amount of 16p in new loan notes per share.
Last month, Towry’s results revealed it had seen a 15.4 per cent increase in assets under management to £6.4bn, backed by a 10.8 per cent increase in revenues to a record £91.3m.
The wealth manager’s financial results for 2014 also showed earnings before interest, taxes, depreciation and amortisation up 6 per cent to £24m, from £22.7m in 2013.
Rob Devey, chief executive at Towry, said: “This is a significant acquisition for Towry and we want to take the opportunity to welcome both clients and employees of Ashcourt Rowan. Ashcourt Rowan is an excellent fit with Towry, set to deliver significant benefit to clients and shareholders.
“Our continued priority over the coming months is to ensure a smooth period of integration between the two businesses, while maintaining an excellent standard of financial planning and investment management services to our clients.”