A listed law firm which has been on the acquisition trail has bought up another business.
Knights Group has exchanged contracts for full-service Nottingham firm Fraser Brown Solicitors in a deal worth up to £8.28 million.
Fraser Brown chief executive Patrick Wood said: “With its ambitious culture and strong reputation, we see Knights as a good match for us.
“Having expanded recently, we look forward to continuing to grow our presence in the East Midlands as part of a larger Group.”
Knights has a record of acquiring regional law firms in what it calls “attractive locations”, and already has offices in Birmingham, Chester, Derby, Newcastle-under-Lyme, Manchester, York, Oxford and Wilmslow, as well as in Cheltenham and Leicester.
In 2018 it bought Leicester’s largest independent law firm Spearing Waite for around £8.5 million.
Since then it has increased its presence in Manchester, Leicester and Oxfordshire with the growth from 248 fee earners at the time of the acquisitions of Turner Parkinson, Cummins, Spearing Waite and Brook Street, to 290 fee earners at the end of last year.
Knights revenues for the six months to October 31 were up a third at £32 million.
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This latest acquisition strengthens the company’s presence in the East Midlands, where it has looked for new firms to take on with a “strong cultural fit”, in existing and new areas.
Knights has also announced a new £40 million revolving credit facility with HSBC 海角视频 and Allied Irish Bank, which it said was on better terms that its existing £27 million facility with AIB.
Established more than 250 years ago in central Nottingham, Fraser Brown is one of the city’s biggest independent law firms, offering commercial and private client services across the East Midlands.
The acquisition sees 81 fee earners joining Knights.
Unaudited accounts for the year to June 30 show Fraser Brown had revenues of around £7.5 million.
Knights said that following full integration, including the delivery of cost synergies, the board expects Fraser Brown to grow its pre-tax profit margin from 10 per cent to more than 15 per cent.
Under the terms Knights will acquire Fraser Brown from its eight equity partners for £2.83 million in cash – payable on completion – and £3.03 million worth of shares in Knights.
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There is a deferred cash consideration of up to £2.42 million, to be paid in instalments on the first and second anniversary of completion, subject to conditions.
Completion is expected to take place on March 27.
Knights chief executive David Beech said: “We are pleased to announce the agreement to acquire Fraser Brown, one of the largest independent law firms in Nottingham, a key city for business in the East Midlands.
“With its local and national client base and broad spectrum of work, the combination of Fraser Brown with our existing presence in the East Midlands will position us as one of the leading legal and professional services firms in the region.
“We are delighted to build on our strong momentum following the three acquisitions announced in the period to date, which is a testament to Knights’ ability to attract high calibre businesses to the group.”