Financial planning and wealth management firm, AFH Financial Group, has completed its acquisition of Hull-based CTL Three and its subsidiaries in a deal worth £10 million.
The deal sees AFH and its subsidiaries – the Insurance Partnership Financial Services; PCWM; IFA Professional Planning; Private Client Wealth Management (Yorkshire) and Kirk Ella Investments – join the AFH umbrella.
As a result of the transaction Paul Hodgson, Paul Newman, Shane Beardsley and Victoria Hicks, together with 22 advisers and their support staff, will join AFH bringing over £530 million of funds under management.
As per the terms of the deal, the maximum purchase price is £10 million dependent upon performance criteria of the business acquired.
The initial consideration for the acquisition will be satisfied by a cash payment of £4.2 million, funded from the Company’s existing cash resources, and the issue of 26,178 ordinary shares of 10 pence each to Paul Hodgson at 382p.
AFH Chief Exec Alec Hudson said: “The acquisition of CTL is our third transaction of the year and significantly expands AFH’s national footprint with over 240 advisers working across the UK and over £5 billion of FUM.
“At the start of the 2017 financial year, the Board set itself three medium term financial aspirations: FUM of greater than £5 billion, revenues of £75 million per annum and underlying EBITDA margin of 20% on revenue.
“The acquisition of CTL takes our FUM to above £5 billion and we remain confident of achieving the remaining targets.”