REG - Knights Group Hldgs - Acquisition of Birkett Long

Knights groupAnnouncement

06/05/2025 07:00

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RNS Number : 3656H  Knights Group Holdings PLC  06 May 2025

Knights Group Holdings plc

("Knights" or the "Group")

Acquisition of Birkett Long LLP and Birkett Long IFA LLP

Further bolstering scale in the attractive South East market

Expansion into wealth advisory services

Knights today announces that it has agreed to acquire Birkett Long LLP and
Birkett Long IFA LLP (collectively trading as "Birkett Long"), a premium
service regional law firm and independent financial advisory business based in
three locations across Essex, in line with Knights' continuing growth
strategy.

Acquisition rationale and background

Birkett Long LLP, ("the law firm"), a high-quality mid-market regional law
firm which can trace its roots back 200 years, has developed a leading
position in Essex over the last 20 years. It brings a team of 91 fee earning
professionals delivering premium legal services, with an equal split between
service lines for business and private clients. Birkett Long IFA LLP, a
separate legal entity ("the IFA") which has been established for 30 years,
brings a team of 15. Together, they provide the relatively rare ability to
offer both legal and wealth advisory services under one roof, and an entry
point into financial advisory, which Knights has long considered a
complementary service line and growth opportunity.

In the year ended 31 May 2024, Birkett Long generated revenues of £14.7m, and
corporatised PBT of £1m. Following the acquisition, post integration and full
realisation of synergies, Knights expects the business to operate at a low
double digit PBT margin. The acquisition is expected to be immediately
earnings enhancing and will take Knights' annualised revenue to over £200m.

Birkett Long's three locations in Colchester, Chelmsford and Basildon will
allow Knights to add further scale in the South East, and expand its presence
in a relatively affluent area of the country, offering existing clients a
wider range of services supported by the strength and resources of Knights'
well-invested central infrastructure.

The business is a strong fit culturally and operationally, given its similar
private client, real estate and business service lines, giving confidence in a
smooth integration.

Terms of the acquisition

Under the terms of the acquisition, Knights will acquire the business from the
equity partners for a total consideration of £16.6m, subject to working
capital adjustments and on a cash and debt free basis. This comprises an
initial cash consideration of £10m, and deferred cash consideration of
£6.6m, to be paid in equal instalments on each of the first, second and third
anniversaries, subject to certain conditions being met. The consideration will
be satisfied from Knights' existing banking facilities. Completion is expected
to take place on the 13(th) of June for Birkett Long LLP. The acquisition of
Birkett Long IFA LLP is expected to complete at a later date, as it is subject
to FCA consent.

Commenting on the acquisition, David Beech, CEO of Knights, said:

"We are delighted to welcome the Birkett Long team to Knights. This deal
significantly expands Knights' presence in the South East, adding scale in
areas immediately surrounding London, and provides an entry into wealth
advisory, a complementary service which has been of interest to Knights for
some time.

"We are confident that without the constraints of independent ownership and
building on its growth in recent years, the acquisition will deliver further
organic growth in the region."

Martin Hopkins, Managing Partner of Birkett Long, commented:

"We are excited to be joining Knights following a period of growth and
modernisation of our business in recent years. Being part of a business of
scale will allow us to build on our track record by continuing to grow
revenues across both the law firm and the IFA business, allowing us to provide
a broader range of services to our regional clients along with even more
career opportunities for our professionals.

"We look forward to working closely with the team to offer a broader range of
specialisms to our clients and to unlock the significant opportunities in our
market."

 

- ENDS -

Enquiries

 Knights
 David Beech, CEO                   Via MHP

 Kate Lewis, CFO
 Deutsche Numis (Nomad and Broker)
 Stuart Skinner, Kevin Cruickshank  020 7260 1000
 MHP (Media enquiries)
 Katie Hunt, Eleni Menikou          +44 (0)7701308818

knights@mhpgroup.com

Notes to Editors

Knights is a fast-growing legal and professional services business, ranked
within the UK's top 50 largest law firms by revenue. Knights was one of the
first law firms in the UK to move from the traditional partnership model to a
corporate structure in 2012 and has since grown rapidly. Knights has
specialists in all key areas of corporate and commercial law and private
client services. It is focussed on key UK markets outside London and currently
operates from 28 offices locations in Ascot, Beaconsfield, Birmingham,
Brighton, Bristol, Carlisle, Cheltenham, Chester, Exeter, Kings Hill, Leeds,
Leicester, Lincoln, Manchester, Newcastle, Nottingham, Oxford, Reading,
Portsmouth, Sheffield, Solihull, Stoke, Teesside, Uxbridge, Weybridge,
Wilmslow, Worcester and York.

 

 

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