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Knight to acquire Fraser Brown
Posted on Friday, 14 February 2020 13:35
Knights Group Holdings has signed off on a deal to buy UK-based full-service law firm Fraser Brown Solicitors for GBP 8.28 million as it looks to expand its reach across the East Midlands.
The company will pay GBP 2.83 million in cash and GBP 3.03 million in shares.
Furthermore, the consideration includes an earnout of up to GBP 2.42 million to be paid in instalments on the first and second anniversary of completion, dependent on certain conditions being met.
Knights will finance the deal, which is due to close on 27th March 2020, from its existing facilities.
Nottingham-headquartered Fraser Brown is billed as one of the largest independent law firms in the East Midlands.
The group provides a range of legal services, such as debt recovery, commercial dispute resolution and personal injury, wills, trusts and probate advice.
Fraser Brown has offices across the region, including in Lincoln, Radcliffe on Trent and Bingham.
During the financial year ended 30th June 2019, the company generated revenue of GBP 7.50 million and a profit before tax margin (PBT) of 10.0 per cent.
Upon closing, Fraser Brown is expected to post a PBT margin of 15.0 per cent.
David Beech, chief executive of Knights, said: “With its local and national client base and broad spectrum of work, the combination of Fraser Brown with our existing presence in the East Midlands will position us as one of the leading legal and professional services firms in the region.”
Through the deal, the buyer will add 81 fee earners to its operations.
Knights also expects the transaction to increase its earnings in the first full year following closing.
According to Zephyr, the M&A database published by Bureau van Dijk, there were 163 deals targeting offices of lawyers announced worldwide in 2019.
In the largest of these, and the only transaction worth more than USD 100.00 million, IPH bought Australia-based Xenith IP Group for AUD 154.00 million (USD 103.55 million).
© Zephus Ltd