Rathbones to acquire Vision as part of its continuing growth strategy

Posted: 1st October 2015 09:06

Rathbone Brothers Plc ("Rathbones") announces that it has agreed to purchase the remaining 80.1% of Vision Independent Financial Planning Ltd ("Vision") and Castle Investment Solutions Ltd ("Castle") (the "Vision Group").
Vision is an independent specialist financial advice network focusing on high net worth private clients. As at 31 August 2015, it had £925 million of assets under advice and 78 advisers operating nationally.  Castle operates as a sister company to Vision, providing it with administrative services.  Rathbones purchased a 19.9% stake in the Vision Group for £2m in October 2012.

The acquisition of the remaining stake in the Vision Group is part of Rathbones' strategy of broadening its distribution and accessing a greater share of new business intermediated by financial advisers.

Consideration for the acquisition of the remaining 80.1% will comprise a payment of £5 million plus the net asset value of the acquired businesses on completion, and further payments between completion and early 2020 of up to £13 million. These further payments are dependent on the Vision Group meeting growth and operational targets and will be recorded as non-underlying expenses over that period in accordance with IFRS 3: "Business Combinations".  The net asset value will be paid in cash. All other consideration payments will be made 80% in cash and 20% in new Rathbones shares.  The transaction remains subject to regulatory approval.

Philip Howell, Chief Executive of Rathbones, said: "Our decision to acquire the Vision Group is a reflection of its proven ability to grow and the strong relationship we have built up in the last five years. We very much look forward to sharing in its continued success."

Mike Webb, Executive in charge of distribution said: "The acquisition of this high quality financial advice network reinforces our on-going commitment to intermediary distribution. Vision's independent status will remain intact, securing an unequivocal focus on clients' interests and suitability."

Roger Edwards and Paul Sweaton, founders of the Vision Group, said "We are delighted to have secured the further backing of such a prestigious company as Rathbones, and one with which we share so many values. It was vitally important to us that any future partner understood the unique Vision culture and ethos that exists within our business, and we look forward to continued growth under new ownership."

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