Nigel Harris Trust Company Acquired
Rathbone Brothers PLC
3 April 2000
RATHBONE ACQUIRES
NIGEL HARRIS TRUST COMPANY LIMITED IN JERSEY
Rathbone Brothers Plc announces that it has acquired Nigel Harris Trust
Company Limited in Jersey. Nigel Harris Trust Company Limited is one of
Jersey's leading independent trust companies, employing 56 people and
administering in excess of 1,100 companies and trusts on behalf of a
wide range of individual and corporate clients.
The origin of the business is a solicitors' practice and this
complements the existing business of Rathbone Jersey Limited and gives
Rathbones a significant combined business in Jersey with exciting
potential for further development.
In the year ended 31 December 1999 Nigel Harris Trust Company Limited
reported revenue of £4.115m and profit after tax (and after adjusting
for certain non-recurring items) of £1.326m. Net assets of £1.556m have
been acquired.
Consideration comprises an initial amount of £9.945m, representing 7 1/2
times 1999 profit after tax and adjustments and deferred consideration
of 2 1/2 times profit after tax and adjustments for the year ended 31
December 2000, with total consideration capped at £15m. The initial
consideration will be satisfied, 25 per cent. by the allotment of new
ordinary shares to the vendors and 75 per cent. in cash. The cash
element of the initial consideration, is being funded by a placing of
further new ordinary shares with institutional investors. The deferred
consideration will be payable in cash. The placing has been
underwritten by Charterhouse Securities Limited.
Application will be made for both the new ordinary shares which are
being allotted to the Vendors and those being placed, to be listed on
the London Stock Exchange with dealings expected to commence on 10 April
2000. These shares will not rank for the final dividend for the year
ended 31 December 1999.
This acquisition is expected to be immediately earnings enhancing and,
on a pro forma basis, would have added 1.9p to earnings per share in
1999. The three vendors, Paul Egerton-Vernon, Christopher Harris and
Nicola Adamson, will continue to work for the business and it is
Rathbones' intention to merge the businesses of Rathbone Jersey Limited
and Nigel Harris Trust Company Limited in due course.
Commenting on the acquisition, Micky Ingall, Chairman of Rathbone
Brothers Plc, said:
'We are delighted to welcome the staff and clients of Nigel Harris Trust
Company Limited to the Rathbone group. The complementary nature of
their skills will strengthen our Trust division and our presence on
Jersey. We also intend, over time, to offer their clients other
services, such as investment management'.
Press enquiries:
Rathbones: Tel.020 7399 0000
Micky Ingall, Chairman
Andy Pomfret, Finance Director
Nigel Harris Trust Company: Tel. 01534 495555
Paul Egerton-Vernon
Christopher Harris
Nicola Adamson
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