Brewin Dolphin buys Irish fund manager Tilman
INVESTMENT manager Brewin Dolphin is buying Irish fund manager Tilman Asset Management for €20.8m (£18.2m) in a deal aimed at tapping rising demand for private wealth management advice in Ireland.
Brewin Dolphin, which runs around £25bn of assets on behalf of 130,000 private clients, will issue shares to finance the takeover, which reflects a price to earnings ratio of 11.5 times Tilman’s profits to 31 March.
It has also agreed to pay an additional sum of up to €15m worth of Brewin shares based on Tilman’s performance to September 2014.
“It has been the board’s long held view that there is a strong demand in Ireland for the services that Brewin can offer. Recent events in Ireland have only made this opportunity greater with many clients moving from banks and other institutions which were dominant in our field,” Brewin said.
The acquisition is expected to be “broadly” earnings neutral in the first year, with “significant synergies” seen after 2014 following the integration of the two firms.