Caledonia Investmnts - Caledonia signs agreement to sell 7IM
05/09/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230905:nRSE3620La&default-theme=true
RNS Number : 3620L Caledonia Investments PLC 05 September 2023
CALEDONIA INVESTMENTS PLC
CALEDONIA PRIVATE CAPITAL SIGNS AGREEMENT TO SELL 7IM
Caledonia Investments plc ("Caledonia") is pleased to announce that it has
agreed terms for the sale of its majority stake in Seven Investment Management
("7IM"), a vertically integrated retail wealth management business, to Ontario
Teachers' Pension Plan Board ("OTPP"), a global investor with approximately
C$250 billion in net assets.
The transaction is subject to change in control approval by the Financial
Conduct Authority and is expected to complete in late 2023 or early 2024.
7IM was acquired by Caledonia in September 2015 and has since grown strongly
both organically and through acquisition. Supported by Caledonia, 7IM has
continued to invest in its market leading proprietary platform service and has
expanded its direct to consumer offering via multiple strategic acquisitions.
Today 7IM is a highly client-centric, vertically integrated wealth management
business, which encompasses an award-winning platform and leading multi-asset
investment management capabilities, led by CEO Dean Proctor.
Subject to the exact timing of completion, Caledonia is expected to receive
cash proceeds of c.£255m, net of transaction expenses, for the sale of its
ordinary and preference shares in 7IM. The cash proceeds will be held on
deposit for future investment. In its audited accounts as at 31 March 2023,
Caledonia's shareholding in 7IM was valued at £187.1m excluding a further
£13.2m which will be invested into the business prior to completion.
Commenting on the sale, Tom Leader, Caledonia's Head of Private Capital, said:
"In the eight years since our acquisition of 7IM in September 2015, the
business has more than doubled assets under management, nearly trebled
headcount, and significantly enhanced its revenue and profitability.
Caledonia's investment philosophy is to focus on growth over the long term,
ensuring that our portfolio companies are well placed for exit when the right
time comes for all stakeholders. Our investment in 7IM embodies this
philosophy and we are delighted with what Dean and his team have achieved
during our partnership. We thank and congratulate them for their stewardship
of the business and wish them every success in their new partnership with
OTPP."
Dean Proctor, CEO of 7IM, commented:
"The team and I would like to thank Caledonia for their support and resources
over the years in helping 7IM to deliver on its strategy and vision.
Caledonia's enduring capital approach has allowed us to focus on what is right
for 7IM, our colleagues and, most importantly, our clients. We are now well
positioned for our next phase of growth, and I am excited about our new
partnership with OTPP, who are deeply supportive of the team and the firm's
strategy. With OTPP's support, we look forward to starting a new chapter in
7IM's history and accelerating our growth to cement our position as one of the
leading vertically integrated wealth managers in the UK which encompasses an
award-winning platform and leading multi-asset investment management
capabilities.
"What doesn't change, however, is our ongoing commitment to our strategic
vision of providing an unrivalled experience to our colleagues and clients,
that has long been at the heart of 7IM's success."
05 September 2023
For further information contact:
Company contacts
Caledonia Investments plc +44 20 7802 8080
Mat Masters
Chief Executive Officer
Rob Memmott
Chief Financial Officer
Tom Leader
Head of Private Capital
Media contacts
Teneo +44 20 7353 4200
Tom Murray
Robert Yates
caledonia@teneo.com (mailto:caledonia@teneo.com)
This announcement contains inside information in relation to Caledonia.
END
Notes for editors:
Caledonia Investments plc
Caledonia is a self-managed investment trust company listed on the London
Stock Exchange with net assets of approximately £2.8bn as at 31 July 2023.
The company maintains a concentrated portfolio of international quoted,
unquoted and fund investments and has paid an increasing annual dividend for
56 years.
In the Private Capital arena, Caledonia typically seeks to invest £50m to
£150m in private companies, either on a majority or minority basis, where
Caledonia provides enduring capital and support to investee company management
teams over the longer term. The Caledonia Private Capital portfolio includes
Stonehage Fleming (a multi-family office providing fiduciary and investment
management services to UHNW clients and families), Cobehold (the holding
company of Cobepa, a European unquoted investment house), Cooke Optics (a UK
manufacturer of premium cinematography lenses), Liberation Group (a pub,
restaurant and drinks business with a pub estate stretching from Southwest
London to Bristol and the Channel Islands) and AIR-serv Europe (a leading
designer and manufacturer of air, vacuum and jet wash machines provided as
turn-key solutions to fuel station forecourt operators).
For additional information on Caledonia Private Capital, please visit
www.caledoniaprivatecapital.com (http://www.caledoniaprivatecapital.com) and
for Caledonia please visit www.caledonia.com (http://www.caledonia.com) .
7IM
7IM provides wealth management, asset management and platform services to over
9,000 retail investors and over 2,000 intermediaries in the UK. At the core of
its business is a proprietary investment platform which provides award-winning
service and functionality to financial advisors, alongside a multi-asset
investment management function that aims to provide low-volatility, low-cost
returns utilising both active and passive strategies. When Caledonia acquired
the business in September 2015, 7IM had assets under management (AUM) of £9.5
billion. Today, 7IM has circa £21 billion AUM. For the financial year to 31
December 2022, Caledonia Thames Holdings Jersey Limited, the company through
which Caledonia holds its investment in 7IM and which will be sold as part of
the transaction, generated a pre-tax profit of £11.0m and had gross assets of
£213.9m.
For additional information on 7IM, please visit www.7im.co.uk.
About Ontario Teachers' Pension Plan
Ontario Teachers' is a global investor with net assets of $249.8 billion as at
June 30, 2023. We invest in more than 50 countries in a broad array of assets
including public and private equities, fixed income, credit, commodities,
natural resources, infrastructure, real estate and venture growth to deliver
retirement income for 336,000 working members and pensioners.
With offices in Hong Kong, London, Mumbai, San Francisco, Singapore and
Toronto, our more than 400 investment professionals bring deep expertise in
industries ranging from agriculture to artificial intelligence. We are a fully
funded defined benefit pension plan and have earned an annual total-fund net
return of 9.4% since the plan's founding in 1990. At Ontario Teachers', we
don't just invest to make a return, we invest to shape a better future for the
teachers we serve, the businesses we back, and the world we live in. For more
information, visit otpp.com (https://www.otpp.com/en-ca/) and follow us
on LinkedIn (https://linkedin.com/company/otpp/) .
Transaction
The sale of 7IM was led by Tom Leader, Dan Lock and James Lander for
Caledonia.
7IM and Caledonia were advised as follows:
• Evercore (Ollie Clayton, Demetris Efthymiou and Stephane Houpert) provided
lead sell side advice.
• Macfarlanes (Stephen Drewitt) provided legal advice and legal vendor due
diligence.
• Oliver Wyman (Martin Sanchez) provided commercial vendor due diligence.
• PwC (Andrew Cann, Stephen Jones, William Barrie) provided vendor financial due
diligence.
• Deloitte (Tim Haden, James Clare) provided tax advice and vendor due
diligence.
• Grant Thornton (David Morrey) provided regulatory and compliance due
diligence.
• Tatsu Partners (Mike Barnes & Lee O'Donnell) provided debt advice.
• Liberty (Simon Hill) provided management advice to 7IM management
shareholders.
Neither the contents of Caledonia's nor 7IM's websites, nor the contents of
any website accessible from hyperlinks on these websites (or any other
website) is incorporated into, or forms part of, this announcement.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END DISZZGGLMKLGFZG