TIDMCLDN
RNS Number : 3620L
Caledonia Investments PLC
05 September 2023
CALEDONIA INVESTMENTS PLC
CALEDONIA PRIVATE CAPITAL SIGNS AGREEMENT TO SELL 7IM
Caledonia Investments plc ("Caledonia") is pleased to announce
that it has agreed terms for the sale of its majority stake in
Seven Investment Management ("7IM"), a vertically integrated retail
wealth management business, to Ontario Teachers' Pension Plan Board
("OTPP"), a global investor with approximately C$250 billion in net
assets.
The transaction is subject to change in control approval by the
Financial Conduct Authority and is expected to complete in late
2023 or early 2024.
7IM was acquired by Caledonia in September 2015 and has since
grown strongly both organically and through acquisition. Supported
by Caledonia, 7IM has continued to invest in its market leading
proprietary platform service and has expanded its direct to
consumer offering via multiple strategic acquisitions. Today 7IM is
a highly client-centric, vertically integrated wealth management
business, which encompasses an award-winning platform and leading
multi-asset investment management capabilities, led by CEO Dean
Proctor.
Subject to the exact timing of completion, Caledonia is expected
to receive cash proceeds of c.GBP255m, net of transaction expenses,
for the sale of its ordinary and preference shares in 7IM. The cash
proceeds will be held on deposit for future investment. In its
audited accounts as at 31 March 2023, Caledonia's shareholding in
7IM was valued at GBP187.1m excluding a further GBP13.2m which will
be invested into the business prior to completion.
Commenting on the sale, Tom Leader, Caledonia's Head of Private
Capital, said:
"In the eight years since our acquisition of 7IM in September
2015, the business has more than doubled assets under management,
nearly trebled headcount, and significantly enhanced its revenue
and profitability. Caledonia's investment philosophy is to focus on
growth over the long term, ensuring that our portfolio companies
are well placed for exit when the right time comes for all
stakeholders. Our investment in 7IM embodies this philosophy and we
are delighted with what Dean and his team have achieved during our
partnership. We thank and congratulate them for their stewardship
of the business and wish them every success in their new
partnership with OTPP."
Dean Proctor, CEO of 7IM, commented:
"The team and I would like to thank Caledonia for their support
and resources over the years in helping 7IM to deliver on its
strategy and vision. Caledonia's enduring capital approach has
allowed us to focus on what is right for 7IM, our colleagues and,
most importantly, our clients. We are now well positioned for our
next phase of growth, and I am excited about our new partnership
with OTPP, who are deeply supportive of the team and the firm's
strategy. With OTPP's support, we look forward to starting a new
chapter in 7IM's history and accelerating our growth to cement our
position as one of the leading vertically integrated wealth
managers in the UK which encompasses an award-winning platform and
leading multi-asset investment management capabilities.
"What doesn't change, however, is our ongoing commitment to our
strategic vision of providing an unrivalled experience to our
colleagues and clients, that has long been at the heart of 7IM's
success."
05 September 2023
For further information contact:
Company contacts
Caledonia Investments
plc +44 20 7802 8080
Mat Masters
Chief Executive Officer
Rob Memmott
Chief Financial Officer
Tom Leader
Head of Private Capital
Media contacts
Teneo +44 20 7353 4200
Tom Murray
Robert Yates
caledonia@teneo.com
This announcement contains inside information in relation to
Caledonia.
END
Notes for editors:
Caledonia Investments plc
Caledonia is a self-managed investment trust company listed on
the London Stock Exchange with net assets of approximately GBP2.8bn
as at 31 July 2023. The company maintains a concentrated portfolio
of international quoted, unquoted and fund investments and has paid
an increasing annual dividend for 56 years.
In the Private Capital arena, Caledonia typically seeks to
invest GBP50m to GBP150m in private companies, either on a majority
or minority basis, where Caledonia provides enduring capital and
support to investee company management teams over the longer term.
The Caledonia Private Capital portfolio includes Stonehage Fleming
(a multi-family office providing fiduciary and investment
management services to UHNW clients and families), Cobehold (the
holding company of Cobepa, a European unquoted investment house),
Cooke Optics (a UK manufacturer of premium cinematography lenses),
Liberation Group (a pub, restaurant and drinks business with a pub
estate stretching from Southwest London to Bristol and the Channel
Islands) and AIR-serv Europe (a leading designer and manufacturer
of air, vacuum and jet wash machines provided as turn-key solutions
to fuel station forecourt operators).
For additional information on Caledonia Private Capital, please
visit www.caledoniaprivatecapital.com and for Caledonia please
visit www.caledonia.com .
7IM
7IM provides wealth management, asset management and platform
services to over 9,000 retail investors and over 2,000
intermediaries in the UK. At the core of its business is a
proprietary investment platform which provides award-winning
service and functionality to financial advisors, alongside a
multi-asset investment management function that aims to provide
low-volatility, low-cost returns utilising both active and passive
strategies. When Caledonia acquired the business in September 2015,
7IM had assets under management (AUM) of GBP9.5 billion. Today, 7IM
has circa GBP21 billion AUM. For the financial year to 31 December
2022, Caledonia Thames Holdings Jersey Limited, the company through
which Caledonia holds its investment in 7IM and which will be sold
as part of the transaction, generated a pre-tax profit of GBP11.0m
and had gross assets of GBP213.9m.
For additional information on 7IM, please visit www.7im.co.uk
.
About Ontario Teachers' Pension Plan
Ontario Teachers' is a global investor with net assets of $249.8
billion as at June 30, 2023. We invest in more than 50 countries in
a broad array of assets including public and private equities,
fixed income, credit, commodities, natural resources,
infrastructure, real estate and venture growth to deliver
retirement income for 336,000 working members and pensioners.
With offices in Hong Kong, London, Mumbai, San Francisco,
Singapore and Toronto, our more than 400 investment professionals
bring deep expertise in industries ranging from agriculture to
artificial intelligence. We are a fully funded defined benefit
pension plan and have earned an annual total-fund net return of
9.4% since the plan's founding in 1990. At Ontario Teachers', we
don't just invest to make a return, we invest to shape a better
future for the teachers we serve, the businesses we back, and the
world we live in. For more information, visit otpp.com and follow
us on LinkedIn .
Transaction
The sale of 7IM was led by Tom Leader, Dan Lock and James Lander
for Caledonia.
7IM and Caledonia were advised as follows:
-- Evercore (Ollie Clayton, Demetris Efthymiou and Stephane
Houpert) provided lead sell side advice.
-- Macfarlanes (Stephen Drewitt) provided legal advice
and legal vendor due diligence.
-- Oliver Wyman (Martin Sanchez) provided commercial
vendor due diligence.
-- PwC (Andrew Cann, Stephen Jones, William Barrie) provided
vendor financial due diligence.
-- Deloitte (Tim Haden, James Clare) provided tax advice
and vendor due diligence.
-- Grant Thornton (David Morrey) provided regulatory
and compliance due diligence.
-- Tatsu Partners (Mike Barnes & Lee O'Donnell) provided
debt advice.
-- Liberty (Simon Hill) provided management advice to
7IM management shareholders.
Neither the contents of Caledonia's nor 7IM's websites, nor the
contents of any website accessible from hyperlinks on these
websites (or any other website) is incorporated into, or forms part
of, this announcement.
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END
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