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Brooks Macdonald Group plc (LSE:BRK) has revealed the sale of its international division to Canaccord Genuity [ (TSX:CF), (LSE:CF) ] Wealth for £50.85 million. This move is aimed at simplifying Brooks Macdonald’s operations and refocusing on its UK business, with plans to pursue growth through mergers and acquisitions.
Under the terms of the deal, Canaccord will make an initial payment of £28 million for the Brooks Macdonald Asset Management (BMI) business. An additional sum of up to £22.85 million will be paid over the next two years, contingent on performance metrics.
As of June, BMI was managing £2.3 billion in funds and reported an underlying pre-tax profit of £3.3 million for its most recent financial year. The sale is intended to streamline Brooks Macdonald's structure and enable a sharper focus on domestic operations.
Brooks Macdonald's chief executive, Andrea Montague, expressed satisfaction with the transaction, highlighting Canaccord’s strong presence and understanding of local markets as assets for BMI's future growth and development.
The company anticipates incurring separation costs ranging from £3 million to £5 million as part of the transaction, which is expected to finalize by March of the following year.
In addition to the sale, Brooks Macdonald announced the appointment of Katherine Jones, the former finance director of Phoenix Group Holdings PLC, as its new chief financial officer. Montague indicated that Jones’s appointment is expected to be crucial for the firm’s plans to stimulate growth.
This strategic move and leadership change mark a significant shift for Brooks Macdonald as it looks to sharpen its focus on expanding its UK operations and enhancing its growth trajectory through strategic initiatives.
