[1]Moat: “class-leading expertise” in volume services
Fairpoint Group has bought volume personal injury and conveyancing firm Colemans-ctts for £9m, plus a further £7m, linked to performance.
The AIM-listed business, which last year bought national firm Simpson Millar and family practice Foster & Partners, said the acquisition would mean that 62% of group revenues came from consumer legal services.
Chief executive Chris Moat described the deal as an “important step” in the development of Fairpoint’s “fast-growing legal services platform”.
He went on: “It brings particular class-leading expertise in the areas of volume personal injury, conveyancing and travel services and gives strong impetus to our agenda of reshaping the group towards a broader professional services organisation.”
Colemans has three offices in Kingston-upon-Thames, Acton in West London and Manchester, with over 200 staff and around 67 fee-earners.
Janet Tilley, managing partner of Colemans, said the acquisition “presented the opportunity for Colemans to become part of a larger and dynamic group, leading the transformation of this industry segment”.
Fairpoint said that Colemans generated unaudited revenues of £19m and pre-tax profits of £2.3m. The firm’s unaudited gross assets were £18.4m.
Initial consideration would be made up of £8m in cash and a further £1m in shares. The group said further consideration of up to £7m “may be payable” subject to the achievement of “certain performance criteria”, including the financial performance of Colemans and “integration targets”.
The acquisition is expected to involve £1.5m of “legal, professional and integration costs” in the second half of this year. Formal completion is scheduled for 14 August, following a consultation with Colemans staff.
Fairpoint said it had extended its five-year debt facility with from £20m to £25m, and, immediately following the acquisition, the group’s debt would total £13.2m.
Mr Moat said in March this year that financial success in 2014 had laid the foundations [2]for future acquisitions.