Duncan Lawrie said Brewin Dolphin’s Financial Planning offering and its enhancement to Duncan Lawrie’s services was one reason why it wanted to join forces with Brewin.
The deal involves a cash payment on completion of £25.5m and a payment to reflect the value of net assets in the business at that date (estimated at £2.5m), a total of £28m. The takeover will increase total group funds under management to £36.1bn.
DLAM's investment team of 11 investment managers and 8 investment support staff are expected to join the London (17 employees) and Bristol (2 employees) offices of the group.
The DLAM team, which will continue to be led by Seth Cowburn, manages funds of approximately £735m on behalf of approximately 1,000 clients. About 84% of funds are managed on a discretionary basis.
The transaction will be financed from the group's own cash resources which stood at £171m at the end of the company's financial year (30 September 2016). Completion of the transaction is expected to take place during the first half of 2017.
David Nicol, Brewin Dolphin chief executive, said: "DLAM is a high quality investment management business and the acquisition is an excellent fit for us given the shared business philosophy centred on a personalised approach to client service.
“The transaction demonstrates the attraction of Brewin Dolphin to wealth management professionals and clients who value traditional, personalised services coupled with an innovative, forward looking approach."
Seth Cowburn, head of wealth management at DLAM, said: "The investment management team at Duncan Lawrie Asset Management is excited to be joining Brewin Dolphin particularly given that its culture and investment style represent a natural home for DLAM.
“This was important in our decision making, and with the entire investment management team being welcomed by Brewin Dolphin, both continuity of service and the staff will remain unchanged.
“Brewin Dolphin's Financial Planning, research, infrastructure and investment management expertise will considerably enhance the service we can offer, and we see the sale to Brewin Dolphin as a very positive development for both the clients and the investment management team."