The initial consideration is £1.56m, based on 3.25% of the discretionary assets being purchased. The deal’s total consideration is subject to a maximum of £6m.
Clarke Willmott’s investment activities are to be integrated and rebranded as Brooks Macdonald Asset Management (BMAM), the group’s discretionary investment management business. The law firm’s in-house investment management team of eight, including five investment managers, currently runs approximately £120m of discretionary client assets.
The deal between Brooks Macdonald Asset Management and Somerset-based Clarke Willmott is expected to complete on 31 October 2011. Once completed the Clarke Willmott team will transfer to Brooks MacDonald but remain based in Taunton, establishing BMAM’s sixth office location.
Chris Macdonald, chief executive of Brooks Macdonald, says: “Aside from the many synergies, which include investment style, client care, transparency and private client focus, the group has for some time been considering opening a regional office in the South West. This acquisition will form the nucleus of our new office, to be based in Taunton, which will open concurrently with the completion of the transaction."
