Brooks Macdonald Group plc (LSE:BRK) has announced the sale of its international arm to Canaccord Genuity (TSX:CF, LSE:CF) Wealth for £50.85 million.
This will simplify Brooks Macdonald and allow renewed focus on UK operations, the asset manager said Thursday, including plans for growth through the likes of mergers and acquisitions.
Canaccord will pay £28 million initially for the Brooks Macdonald Asset Management (BMI) business, followed by up to £22.85 million over the next two years based on performance.
BMI had been managing £2.3 billion worth of funds as of June and generated a £3.3 million underlying pre-tax profit in its most recent financial year.
“We are pleased to announce the sale of BMI to Canaccord,” Brooks Macdonald chief executive Andrea Montague said.
“Their presence and understanding of the local markets will provide a strong foundation for the future growth and development of the business.”
Brooks Macdonald is set to incur between £3 million and £5 million in separation costs, with the deal expected to be completed next March.
The company also named ex-Phoenix Group Holdings PLC finance director Katherine Jones as chief financial officer on Thursday, with Montague adding her appointment would be pivotal in the firm’s plans to reignite growth.