Wealth deal

Mattioli Woods buys Caledonia Asset Management

Charlotte Square head office of Caledonia Asset Management

Mattioli Woods, the specialist wealth and asset management business, has acquired Edinburgh-based Caledonia Asset Management in a cash and shares deal worth £960,000.

There is the potential for a further £640,000 top-up payment, dependent on the attainment of specified performance targets in the two years after completion.

Founded in 2000, Caledonia provides wealth management services to affluent individuals and families, encompassing lifestyle financial planning, pensions and retirement planning, ISAs, life assurance, critical illness, income protection and personal tax planning.  

Working with circa 150 private clients with more than £55 million of assets under advice, Caledonia is based in Charlotte Square and employs five staff, all of whom will remain with Mattioli Woods following completion.  

In the year ended 31 December 2020, Caledonia generated revenues of £450,000 with a profit before taxation of £180,000.  At 31 December 2020, Caledonia’s gross assets were £270,000m and net assets were £190,000.  The acquisition is expected to be earnings enhancing in the first full year of ownership.

The deal involves payment of £860,000 in cash plus 14,442 new ordinary shares in Mattioli Woods.

The additional payment would be in cash on the first and second anniversaries of completion, subject to certain profit targets being met. 

Ian Mattioli, chief executive of Mattioli Woods, said: “Caledonia is a great fit for us both culturally and operationally, serving a similar client base to that of our existing business.  

“This is an important strategic step for the Group, extending the geographic footprint of our wealth management business in Edinburgh.”

Gordon and Pauline Forbes, Caledonia’s directors, added: “This is a very positive step for everyone associated with Caledonia, especially our clients and employees.  Mattioli Woods shares our core values and client centred business ethos and so we are delighted to become part of the Mattioli Woods Group.

“Combining our strengths will allow Caledonia’s clients and employees to benefit from the considerable additional resources and support available as part of the group, enabling our team to enhance and expand the bespoke personal service our clients expect from us.  We are very much looking forward to this exciting new phase”.

Keith Anderson, CEO at legal services firm Vialex, who acted for Caledonia Asset Management, said “Gordon and Pauline have worked hard over many years to build an impressive client book and I am delighted that their efforts and commitment have been rewarded in this deal.

“There is much activity in this sector, and we continue to be involved with other IFA businesses looking to expand or exit.”

The deal follows the recent sales of Cornerstone Asset Management and Adam & Co’s wealth management business.

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