Charles Stanley has agreed the terms of a sale to Raymond James, in a deal that is worth £278.9m.
The boards of Raymond James and Charles Stanley today (July 29) said they have reached an agreement on the terms of the acquisition, which will see Raymond James acquire the entire issued share capital of Charles Stanley.
The deal has valued each Charles Stanley Share at 515 pence or 43 per cent above yesterday’s close.
Paul Abberley, chief executive officer of Charles Stanley, 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.
“Raymond James recognises Charles Stanley’ reputation, heritage and talented staff, as well as our shared client-centric approach and compatible structures and cultures.
"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.”
The acquisition will see approximately 200 wealth managers join Raymond James from Charles Stanley, many of whom are located in key geographic areas across the United Kingdom that Raymond James has targeted for expansion.
Charles Stanley would add approximately £27.1bn in client assets, bringing Raymond James’ total client assets in the UK to over £40bn.
Paul Reilly, CEO of Raymond James, said: “We have long respected and admired Charles Stanley and believe our proposal presents an extremely attractive opportunity to combine our respective UK wealth management operations.
“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."
This acquisition announced follows a series of office openings by Raymond James across the country.
Earlier this month, it opened a branch in the heart of Cheshire and one in Cheltenham.
sonia.rach@ft.com
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