Brooks Macdonald acquires Channel Islands funds from Lloyds Bank

Investment management firm Brooks Macdonald has agreed to acquire the Channel Islands wealth management and funds business of Lloyds Bank for an estimated total of £9.63m.

Brooks Macdonald said on Wednesday that an initial payment of £9.3m would be made in cash from existing financial resources, while an additional £330,000 would be paid two years after completion, dependent on the acquired business meeting certain pre-agreed performance targets.

The AIM-listed firm's wholly-owned subsidiary, Brooks Macdonald Asset Management International, also reached a reciprocal arrangement with Lloyds Bank Corporate Markets which will see the pair introduce relevant services to each other's clients.

BM said the deal, covering £1bn-worth of funds under management, increased its international funds under management by around two-thirds to roughly £2.5bn, with its pro forma funds under management as of 31 May increasing as much as 8% to over £13bn.

Chief executive Caroline Connellan said: "The acquisition of Lloyds' offshore wealth and funds business brings greater scale, new capabilities and expanded distribution reach.

"This acquisition is a further step forward in achieving our growth ambitions, complementing our organic strategy, creating value for shareholders and bringing benefits for clients and intermediaries."

As of 1145 BST, Brooks Macdonald shares were down 0.29% at 1,700p.