Investment firm Brewin Dolphin has struck a deal worth around £38 million to buy Investec’s wealth management business in Ireland.
The group, which employs more than 200 at its offices in Glasgow, Edinburgh, Aberdeen and Dundee, last month flagged it was in discussions with South African-headquartered Investec over the business.
The announcement came as the firm announced plans to raise £60 million in a share placing and released first half results which showed a fall in profits despite rising income.
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Chief executive David Nicol said the Investec deal was an “exciting opportunity to strengthen substantially our existing presence in 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,” he said.
The deal represents Brewin Dolphin’s second in Ireland in the past eight years following the purchase of fund manager Tilman in a £30 million deal in 2011.
The announcement came as the group announced an increase in income in the first half of the year although profits slipped.
Total funds rose to £42.4 billion compared to £39.7 billion in the same period last year. Income increased marginally to £162.3 million but profit before tax and adjusted items fell by more than 8% to £35.6 million.
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Nicol said the group has continued to deliver strong and resilient organic growth, even with the backdrop of volatile market conditions.
“We are investing in our business to support future long-term growth. Over the past few months we have announced the replacement of our core custody and settlement system and a number of acquisitions. These initiatives are laying the foundations for long-term growth and will ensure that we are well placed to capture market opportunities.”
The group today also announced plans to raise £60 million through a placing at 305p a share to bolster its financial position and provide it with “flexibility for further development opportunities”.
