Friday, 10 May 2019 08:17

Brewin Dolphin buys Irish wealth manager for £38m

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Brewin Dolphin CEO David Nicol Brewin Dolphin CEO David Nicol

Expanding wealth manager and Financial Planner Brewin Dolphin has bought the Republic of Ireland wealth management business of Investec for approximately £38m, it announced today.

In April, Brewin Dolphin confirmed exploratory talks about acquiring the business and has now confirmed the takeover, expected to complete in the second half of this year.

The news comes as Brewin announced separate plans to raise £60m from a stock market placing after a series of recent acquisitions including Epoch Wealth Management. The cash could be used to fund further deals, it said.

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Brewin says the Irish acquisition will expand its presence in “one of Europe's fastest growing economies” and fits in with its strategy of growth in assets under management.

It plans to build on Brewin Dolphin's existing business in the Republic of Ireland to create a “top 3 wealth management business” in the Republic with assets under management and advice of over £4bn.

It will combine the Investec unit with its existing Republic of Ireland investment team of 33 who look after 5,000 clients but hints that not all support staff will be retained in the takeover.

David Nicol, Brewin Dolphin chief executive, said: "This acquisition, which is consistent with our strategy of growth in assets under management, provides us with an exciting opportunity to strengthen substantially our existing presence in the Republic of Ireland, one of Europe's fastest growing economies.

“We will also be in a stronger position to benefit from the country's growing demand for discretionary and advice-led services, supported by favourable demographics, with the country having the youngest population in Europe."

Separately, Brewin Dolphin says its proposed placing of new ordinary shares should raise gross proceeds of about £60m but the placing is not conditional on the completion of the acquisition.

The main reason for the placing is to “maintain a strong group regulatory capital level,” although it adds the cash will allow it to “take advantage of further development opportunities.”

Brewin has acquired a number of wealth business recently including Epoch Wealth Management LLP and three other smaller recent acquisitions.

• Editor's Note 2.45 pm: Brewin Dolphin has reported that it has successfully completed the placing announced earlier today. A total of 19,672,131 new ordinary shares of one pence each in Brewin Dolphin were placed by Liberum and RBC at a price of 305 pence per share with institutional investors, raising gross proceeds of approximately £60 million.

Last modified on Friday, 10 May 2019 14:53
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