Raymond James UK Wealth Management, a subsidiary of Raymond James Financial, has brokered a deal to buy British wealth manager Charles Stanley in a deal that is worth £278.9m.
The offer of £5.15 per share represents a premium of 43% to the closing share price on 28 July 2021.
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Founded in 1792, Charles Stanley is one of the oldest companies trading on the London Stock Exchange.
The acquisition would add approximately £27.1bn in client assets, bringing Raymond James’ total client assets in the UK to over £40bn.
Furthermore, Charles Stanley’s multiple affiliation options will allow Raymond James to provide wealth managers affiliation choices in line with its model in Canada and the US.
It will also see 200 wealth managers join Raymond James. Many of these employees are said to be located in key geographic areas in the UK where the company is looking to expand its reach.
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By GlobalDataRaymond James CEO Paul Reilly said: “Raymond James will seek to leverage the respective strengths of Charles Stanley and Raymond James through further investment in technology, infrastructure and back office partnerships to enhance the firms’ already strong offering in wealth management.”
Following the acquisition, Charles Stanley is likely to continue operating as a separately branded firm, doing business as Charles Stanley, a division of Raymond James.
Charles Stanley chairman David Howard and chief executive Paul Abberley will remain in place and the two companies’ British operations will be manged by Raymond James UK CEO Peter Moores.
Commenting on the deal, Charles Stanley CEO Paul Abberley said: “The board believes that the terms of the acquisition represent fair value and an attractive premium for Charles Stanley shareholders and therefore intends to recommend unanimously that Shareholders vote in favour of the acquisition.
“Supported by the clear strategic rationale and intentions Raymond James has described today, I believe all stakeholders will benefit from the opportunities for growth arising from Charles Stanley becoming embedded within the Raymond James group.”
Last December, Raymond James Financial agreed to acquire boutique firm Financo to facilitate its expansion plans in response to the growing demand for investment banking expertise.
The latest deal follows a series of office openings by the firm in the UK. It recently opened a new branch in Cheshire under the name Raymond James, Chowley.
