REG - Knights Group Hldgs - Acquisition of Meade King

Knights groupAnnouncement

16/01/2023 07:00

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RNS Number : 7495M  Knights Group Holdings PLC  16 January 2023

16 January 2023

Knights Group Holdings plc

("Knights", the "Company" or the "Group")

Acquisition of Meade King LLP

Knights enters Bristol with acquisition of long-established law firm

Knights today announces that it has agreed to acquire Meade King LLP ("Meade
King"), an established, independent law firm in Bristol.

Acquisition rationale and background

Tracing its origins to 1790, Meade King is a long-established independent law
firm serving Bristol and the South West. Well-positioned in a significant and
competitive market, the firm has strong real estate and corporate offerings,
with smaller dispute resolution and private wealth practices.  The
acquisition brings 29 fee earners to Knights, and facilitates its entry into
Bristol , the regional financial centre of the South West, a strategic target
region for the Group.  Together with Knights' existing Exeter office, this
creates a second location in the South West.

The acquisition is well-aligned with Knights' strategy to bolster its future
organic growth through selective, considered acquisitions. It not only
provides entry into Bristol and a platform from which to explore potential
further expansion in the city both through recruitment and additional
acquisition opportunities, but also adds scale to Knights' existing service
offering through Meade King's complementary suite of services.

In its unaudited accounts for the year ended 30 April 2022, Meade King
reported revenue of £2.7m and a corporatised PBT margin of circa 5%.
Following full integration and realisation of synergies, the Board expects it
to contribute a PBT margin of circa 17%, which, combined with a typical level
of revenue churn post-acquisition, means the acquisition is expected to be
immediately earnings enhancing.

Terms of the acquisition

Under the terms of the acquisition, Knights will acquire Meade King from its
four existing equity partners ("the Sellers") on a debt free, cash free basis,
for a total consideration of £2.1m.  This comprises an initial cash
consideration of £1.5m, with deferred cash consideration of £0.6m to be paid
as £0.2m on each of the first, second and third anniversaries following
completion.  The cash consideration will be satisfied from Knights' existing
facilities. Completion is expected to take place on 17 February 2023.

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

"We are delighted to announce the acquisition of Meade King, a firm with a
strong reputation and long history in Bristol. Founded in 1790, the firm,
which has a strong cultural fit with Knights, provides the Group with entry
into the growing Bristol market and surrounding region. We are delighted to be
entering a new market and scaling our operation as we cement our position as
the leading legal and professional service business outside of London."

James Hawkins, Managing Partner, Meade King commented:

"Having built a competitive position in Bristol and delivered strong growth
over the past two years, we are thrilled to be joining Knights, a fast-growing
legal and professional services business with a great reputation. As we enter
the next phase of our growth as part of a larger group, we are excited by the
benefits that Knights' scale, deep central resource and unique business model
will bring."

- ENDS -

Enquiries

 Knights
 David Beech, CEO                                Via MHP

 Numis (Nomad and Broker)
 Stuart Skinner, Kevin Cruickshank               020 7260 1000
 MHP (Media enquiries)
 Katie Hunt, Eleni Menikou, Rob Collett- Creedy  020 3128 8147

07736 464749
                                                 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 so that it can
offer end-to-end support to businesses of all sizes and in all sectors. It is
focussed on key UK markets outside London and currently operates from 22
offices located in Birmingham, Brighton, Cheltenham, Chester, Crawley, Exeter,
Leeds, Leicester, Lincoln, Maidstone, Manchester, Newbury, Nottingham, Oxford,
Portsmouth, Sheffield, Southampton, Stoke, Teesside, Weybridge, Wilmslow and
York.

 

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