Mattioli Woods buys Broughtons for up to £4m

Wealth management and employee benefits business Mattioli Woods has announced the acquisition of wealth management advice and administration group Broughtons for up to £4m.

Founded in 2001, Broughtons has 250 individual clients with more than £120m of assets under advice. Based in Oldbury in the West Midlands, the business specialises in the provision of financial planning advice. Its management team will be retained by Mattioli Woods following the acquisition, which is expected to be earnings enhancing in the first full year of ownership.

In the year to the end of July 2017, Broughtons generated a pre-tax profit of £0.62m and revenues of £0.99m.

The total consideration paid by Mattioli includes £2.1m in cash and 77,171 new ordinary shares, valued at £0.60m based on the closing price on Wednesday. In addition, there is a deferred consideration of up to £1.3m payable in cash two years following completion, subject to certain financial targets being met.

Chief executive officer Ian Mattioli said: "Broughtons has a similar culture to Mattioli Woods and holds high values with the client being at the core of all it does. The combined business gives us all opportunities to grow and develop the client offering and we welcome Gary and his team. Long term stability and sustainability is key to growing a modern financial services group and we will all continue to strive to achieve this."

Meanwhile, Broughtons' managing director, Gary Bond, said: "From our initial discussions with Mattioli Woods it was clear that we shared the same values and business culture. We are all excited by the opportunity this gives us as we work to create a great financial services business and to be part of a large group which has clients at its core."

At 1610 BST, the shares were up 1.3% to 790p.