Corporate restructuring specialist, Begbies Traynor Group, has acquired Ernest Wilsons & Co Limited and Ernest Wilson’s (West Yorkshire) Limited, which trade collectively as Ernest Wilson.
The acquisition is for an initial consideration of £4 million, to be satisfied by £3 million in cash from the group’s existing resources and through the issue of 1,163,874 new ordinary shares of 5 pence each in the group.
Under the terms of the acquisition, additional contingent consideration of up to £1.63 million will be payable in line with the achievement of financial targets in the three years following completion, with full payment only payable in the event that significant growth targets have been achieved.
Based in Leeds, Ernest Wilson is a business transfer agent, providing agency services for the sale of small businesses across the UK.
Begbies Traynor said the acquisition enhances the group’s existing transactional support services provided by Eddisons, which include the sale of commercial property, through agency and auction, together with machinery and business asset disposals.
In the financial year ended 31 July 2019, Ernest Wilson reported annual revenue of £2.2 million and pre-tax profits of £0.7 million, when reported on the same basis as the group.
“The acquisition of Ernest Wilson is in line with our strategy to develop the group, by enhancing our expertise and service offering,” said Ric Traynor, Executive Chairman of Begbies Traynor Group.
“Ernest Wilson is highly complementary to our existing services and, by extending our transactional service offering, will enable us to deliver a broader range of services to support business and asset sales.
“Ernest Wilson has a long track record of delivering both excellent service to its clients and strong financial performance, which we expect to build upon as part of the broader group.”