AFH has bought the assets of a Lancashire based IFA in only its second deal of 2016.
The deal for David Rushton Associates Limited is worth a maximum of £298,125, representing around 1.8 per cent of the company’s funds under management.
The acquisition is AFH’s second corporate transaction of the current calendar year, with the consolidator's bosses saying acquisitions will be “carefully selected” and “value enhancing”.
It is the first acquisition of AFH’s financial year, which ended on 31 October.
In October AFH bought an East Anglian IFA firm – CRS Financial Planning – adding £25m to its funds under management, which now exceed £2bn.
David Rushton will add around £16.5m to this figure.
Alan Hudson, chief executive of AFH, said: “This acquisition will strengthen our position in the north west and I look forward to working with David to continue the development of AFH in the region.
“The acquisition of the assets of David Rushton follows the strategy restated in our recent trading update of making selective acquisitions to develop our expansion nationally and leverage our central investment and support functions.
“The company continues to seek high quality businesses of all sizes that will embrace the AFH culture of providing exceptional value to our growing client base while providing attractive returns to our shareholders.”
Under the terms of the acquisition, an initial cash consideration of £157,500 has been paid upon completion, from AFH’s cash resources.
A deferred consideration of up to £140,625 will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the assets acquired from David Rushton.
When the deal goes through David Rushton himself will join AFH.
damian.fantato@ft.com
