REG - Premier Miton Group - Acquisition of Tellworth Investments LLP

Premier MitonAnnouncement

01/11/2023 11:30

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RNS Number : 0605S  Premier Miton Group PLC  01 November 2023

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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE UK
MARKET ABUSE REGULATIONS.

FOR IMMEDIATE RELEASE.

1 November 2023

Premier Miton Group plc

('Premier Miton' or the 'Company')

Acquisition of Tellworth Investments LLP

 

Premier Miton Group plc (AIM: PMI) is pleased to announce the acquisition of
Tellworth Investments LLP ("Tellworth"), a leading UK equity boutique with
assets under management ("AuM") of £559m as at 30(th) September 2023.
Tellworth, which offers both long/short and long only strategies to wholesale
and institutional clients, was established in 2017 by Paul Marriage and John
Warren, with the support of a minority shareholder, BennBridge Hold Co Ltd
("the Exiting Shareholder").

 

The acquisition is in line with Premier Miton's stated inorganic strategy of
buying complimentary asset management platforms with industry expertise and
product diversification as part of a wider commitment to continue to invest in
growth opportunities.

 

The acquisition expands Premier Miton's offering into liquid alternatives with
the addition of long/short strategies and further strengthens Premier Miton's
existing UK equity franchise. The business also offers strategies with
potential for institutional distribution, building on Premier Miton's
developing presence in that market. Tellworth's core investment team,
including co-founders Paul Marriage and John Warren, will move across to
Premier Miton, bringing with them long track records of working in UK equities
with established industry reputations and strong networks of contacts. The
acquisition adds an investment team which is delivering good, consistent
investment performance across its strategies giving scope for significant
asset growth when supported by Premier Miton's well-resourced distribution
team.

 

The initial consideration for Tellworth will be based on AuM at completion. At
the current AuM this will be £5.5m but this can vary between £3.5m and £6m
depending on AuM at completion. Initial consideration will be payable 75% to
Paul Marriage and John Warren (the "Continuing Shareholders") (this 75% will
be split 25% in cash and 75% in PMI shares) and 25% in cash to the Exiting
Shareholder. The consideration shares issued to Continuing Shareholders will
have selling restrictions, namely 25% must be held for one year and 75% must
be held for two years (from the date of completion).

 

An additional consideration of up to £3m may be payable depending on AuM
growth between completion and the first anniversary of completion with the
maximum amount payable if AuM at the first anniversary date exceeds £850m.
This will be payable 95% to Continuing Shareholders in PMI shares or cash (at
Premier Miton's discretion) and 5% payable in cash to the Exiting Shareholder.
Any shares issued as part of the additional consideration are to be held until
three years from the date of completion. In the year to March 2023, Tellworth
generated a profit before tax, members' remuneration or profit shares of
£2.07m and had net assets of £1.09m at 31 March 2023.

 

The acquisition is subject to customary approval by the Financial Conduct
Authority and is expected to complete in early 2024. The Tellworth business
will transition onto the Premier Miton platform in the second half of 2024.
The acquisition is expected to be earnings enhancing in the first full year of
ownership post transition.

 

Mike O'Shea, Chief Executive Officer of Premier Miton, commented:

"We continue to explore inorganic opportunities alongside our clear organic
growth strategy, and are pleased to announce this new acquisition, which we
believe is complementary to our existing business and further strengthens our
longer-term growth plans. We will now be able to offer our clients access to
an even broader range of UK equity investment solutions, bringing the specific
proven experience and expertise of Paul Marriage and John Warren, to work
alongside our own specialist UK investment team; the team have proven track
records of delivering good investment outcomes for investors."

"In addition, Tellworth's existing presence in the institutional market will
further strengthen our distribution strategy as we look to grow our footprint
in this market."

"We continue to enhance our existing investment capabilities, which included
launching a new Emerging Markets Sustainable Fund earlier this year, and we
are delighted to be welcoming the Tellworth team to Premier Miton, to help
grow our business across different client channels and offer a range of high
performing, differentiated products."

Helme Harrison, Chief Executive Officer of Tellworth commented:

"We are really excited to join the Premier Miton team. We see a strong
cultural fit with Premier Miton's highly regarded and well-respected
investment managers, who share our passion for investment excellence and
delivering superior long-term client outcomes. Premier Miton recognises the
value of both our brand and our longstanding expertise in uncovering mispriced
opportunities within the underappreciated UK market."

 

 

ENDS

 

For further information, please contact:

 

Enquiries:

 

 Premier Miton Group plc

 Mike O'Shea, Chief Executive Officer                              01483 306 090

 Investec Bank plc (Nominated Adviser and Broker)

 Bruce Garrow / Ben Griffiths / Virginia Bull / Harry Hargreaves   020 7597 4000

 Edelman Smithfield Consultants (Financial PR)                     07785 275665/

 John Kiely / Latika Shah                                          07950 671948

 

 

Notes to editors:

Premier Miton Investors is focused on delivering good investment outcomes for
investors through relevant products and active management across its range of
investment strategies, which include equity, fixed income, multi-asset and
absolute return.

 

LEI Number: 213800LK2M4CLJ4H2V85

 

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