Polar Capital Holdings PLC Acquisition of Dalton Strategic Partnership LLP (9794I)
17 Diciembre 2020 - 1:00AM
UK Regulatory
TIDMPOLR
RNS Number : 9794I
Polar Capital Holdings PLC
17 December 2020
17 December 2020
Polar Capital Holdings plc
to acquire Dalton Strategic Partnership LLP
Polar Capital Holdings plc ("Polar Capital"), the specialist
active asset management group, today announces it has reached an
agreement to acquire 100% of the issued share capital of Dalton
Capital (Holdings) Limited, the parent company of Dalton Strategic
Partnership LLP ("Dalton"), a UK based boutique asset manager with
Assets under Management ("AuM") of GBP1.24bn as at 15 December
2020, from its shareholders (the "Acquisition" and the
"Transaction"). This AuM figure excludes AuM in the Velox Fund
which is on the Dalton platform but is not part of this
transaction.
Dalton is a London based, independent, asset manager with a
strong European equity capability and distribution reach. The
firm's AuM, excluding the Velox Fund, comprises GBP1.12bn in the
Melchior European Opportunities Fund and related segregated
accounts, managed by David Robinson, together with GBP0.12bn of
European long/short funds managed by Leonard Charlton and three
smaller Global and Asian funds managed by Nick Mottram.
The Melchior European Opportunities Fund has a strong
performance record since its inception in 2010 delivering top
quartile performance within its Morningstar peer group over the
last three and five years, and since inception, as at the end of
November 2020.
The Acquisition has a strong strategic rationale for Polar
Capital with its growth and diversification strategy. It adds a
leading European investment team which is complementary to Polar
Capital's existing European Income team, with established funds,
and a longstanding track record. It also provides Polar Capital
with broader wholesale and institutional distribution into Europe,
particularly in the German market. The Acquisition includes the
existing Luxembourg SICAV umbrella which will aid Polar Capital's
product range for international distribution.
The total consideration is based on the AuM at exchange and at
current AuM will total circa GBP15.6m split between the initial
consideration of GBP8.3m of which GBP7.8m will be paid in cash from
Polar Capital's existing resources and GBP0.5m in Polar Capital
shares and further deferred cash consideration in the region of
GBP7.3m, payable 12 months after completion, with the amount being
linked to the value of AuM at the time. While the deferred
consideration will vary up or down with the level of AuM, the
maximum deferred consideration payable is circa GBP13.2m, therefore
the maximum payable under the transaction is circa GBP21.5m
The costs of the Transaction are expected to be GBP6.2m in total
and will include GBP2.6m of termination costs (which will be
incurred post completion and have been deducted in arriving at the
circa GBP15.6m consideration) and GBP3.6m of reorganisation costs.
The termination and reorganisation costs will be treated as
exceptional items to be incurred in the financial years ending
March 2021 and March 2022. Following the completion of the
Transaction it is anticipated that the Acquisition will, on an
adjusted diluted earnings per share basis, be immediately earnings
enhancing.
The Acquisition is subject to FCA approval and is expected to
complete in Q1 2021 with a transition of the DSP business onto the
Polar Capital platform during Q2 2021.
Gavin Rochussen, CEO, Polar Capital said:
"The Acquisition of Dalton Strategic Partnership is further
delivery of our growth and diversification strategy and is an
excellent strategic, geographic and cultural fit with our existing
business. It delivers greater scale, new capabilities and an
expanded distribution reach in Europe, as well as highly
experienced investment teams with a good track record. This
acquisition will also provide Polar Capital with its first
Luxembourg SICAV.
We are confident that the acquisition will be immediately
earnings enhancing and look forward to welcoming the DSP team and
clients to Polar."
Nick Mottram, CEO, Dalton said:
" We have long been impressed by Polar Capital's strong client
focus, proposition and growth aspirations and are delighted to be
joining the Group. It is a good cultural fit for us and that was
important when we were looking to join a larger group, as we wanted
to ensure we retained investment autonomy over our funds, something
that our founding partner, Andrew Dalton, believed in fundamentally
when he started the firm back in 2002.
The managers of our two key investment strategies, David
Robinson and Leonard Charlton , are committed and enthusiastic
about the Acquisition and the opportunity it will provide to
further develop their investment propositions to the benefit of
their investors.
We are confident that this is an excellent strategic fit for
Dalton and look forward to growing a strong franchise within Polar
Capital."
For further information please contact:
Polar Capital
Gavin Rochussen (Chief Executive)
John Mansell (Executive Director)
Samir Ayub (Finance Director) +44 (0)20 7227 2700
Numis Securities Limited - Nomad and
Joint Broker
Charles Farquhar
Stephen Westgate
Kevin Cruickshank (QE) +44 (0)20 7260 1000
Peel Hunt LLP - Joint Broker
Andrew Buchanan
Rishi Shah +44 (0)20 7418 8893
Camarco
Ed Gascoigne-Pees
Georgia Edmonds
Monique Perks +44 (0)20 3757 4995
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