Acquisition of holding in White Mortgages Limited
27/04/2023 07:00
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RNS Number : 6190X Mattioli Woods PLC 27 April 2023
27 April 2023
Mattioli Woods plc
("Mattioli Woods", "the Company" or "the Group")
Acquisition of holding in White Mortgages Limited
Mattioli Woods plc (AIM: MTW.L), the specialist wealth and asset management
business, is pleased to announce it has acquired 50.1% of the issued share
capital of White Mortgages Limited ("White Mortgages") from Steven White ("the
Seller") for a consideration of £0.425 million.
Mattioli Woods has also entered into an option agreement with the Seller, Mark
Sutton and Robert White ("the Shareholders") which entitles Mattioli Woods to
acquire the remaining 49.9% of White Mortgages ("the Call Option"). The Call
Option is exercisable by Mattioli Woods at any time during the 24-month period
commencing 27 April 2026 for a cash consideration. If Mattioli Woods does
exercise the Call Option, the consideration payable on exercise will be up to
£2.625 million, dependent on the attainment of specified targets in the 12
months prior to the exercise date.
Founded in 2011, White Mortgages specialises in providing independent mortgage
advice, whilst also offering bespoke protection advice. White Mortgages is
based in Lincoln, UK and employs an experienced team of nine staff, comprising
four advisers and five administrative staff, all of whom will remain with
Mattioli Woods following completion.
In the year ended 31 March 2023, White Mortgages generated revenues of £0.68
million with a profit before taxation of £0.35 million. The acquisition is
expected to be earnings enhancing in the first full year of ownership.
The total consideration comprises:
· An initial consideration of £0.425 million on a cash-free,
debt-free basis (subject to adjustment for the value of net assets acquired),
payable in cash; and
· Call Option consideration of up to £2.625 million payable in cash
during the 24-month period commencing 27 April 2026 if the option is
exercised.
Payment of the initial cash consideration, deal costs and estimated net asset
completion adjustment has resulted in a net cash outflow at completion of
£0.61 million (net of estimated cash received on acquisition).
Commenting on the acquisition, Michael Wright, Group Managing Director of
Mattioli Woods, said:
"Our investment in White Mortgages is an exciting extension to our existing
client proposition and is another step forward for Mattioli Woods as we
continue to expand our operations. Over the past six-months we have seen
significant changes in the economy, none more so than immediately after the
Government's mini-budget last September and the impact it had on the mortgage
market, with a leap in mortgage interest rates, the withdrawal of many
mortgage products and a rapid tightening in lenders' underwriting criteria.
By bringing Steve and his team into the Group, we are better positioned to
help those clients looking to finance a new property purchase or re-finance
existing lending."
Steven White, Director of White Mortgage, added:
"We are very excited to partner with a like-minded management team with high
growth ambitions. The sale will help accelerate our growth plan by
broadening our proposition with the support of Mattioli Woods. We will
continue to place integrity; reliability and a commitment to excellence at the
heart of our business."
- Ends -
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of United Kingdom
domestic law by virtue of the European Union (Withdrawal) Act 2018.
For further information please contact:
Mattioli Woods plc
Ian Mattioli MBE, Chief Executive Officer
Ravi Tara, Chief Financial Officer Tel: +44 (0) 116 240 8700
Michael Wright, Group Managing Director www.mattioliwoods.com
Canaccord Genuity Limited (Nominated Advisor and Joint Broker)
Emma Gabriel Tel: +44 (0) 20 7523 8000
Tom Diehl www.canaccordgenuity.com
Singer Capital Markets (Joint Broker)
Justin McKeegan
Tom Salvesen Tel: +44 (0) 20 7496 3000
Alaina Wong www.singercm.com
Media enquiries:
Camarco
Julia Tilley Tel: +44 (0) 20 3757 4998
www.camarco.co.uk
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