A long-established law firm on Teesside company has been bought by a national practice in a £5.2m deal.
Stockton’s Archers Law LLP has been acquired by Knights, a fast-growing legal and professional services firm that has offices around the country, including Birmingham and Stoke-on-Trent. The site will be Knights’ first office in the North East.
Knights said the deal was in line with its strategy “to accelerate its organic growth through carefully targeted acquisitions which are a strong cultural fit”.
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The deal will see Archers’ four equity partners share an eventual £5.2m. In an announcement to the Stock Exchange, Knights said the deal would be made up of £2.1m in cash and £1.6m in shares in Knights, followed by £1.5m paid installments over the next three years. The deal is expected to complete on November 26.
Chris Todd, partner at Archers, said: “After over a century of growth to become one of the leading law firms in Teesside, we are delighted to join Knights, whose culture is closely aligned to ours.
“We look forward to executing on the significant growth opportunities in the North East as part of a larger group, which will allow us to offer greater resources and capabilities to our clients in the region and beyond.”
Archers currently employs around 75 people, including 38 fee earners.
In unaudited accounts for the year ending March 31, Archers reported revenue of £4m. Knights said it expected the deal to be immediately earnings enhancing.
David Beech, CEO of Knights, said: “We are delighted to announce the acquisition of Archers, a leading law firm in Teesside which further expands our footprint into the North East, a region currently undergoing significant public and private investment.
“The acquisition allows us to build on the existing strong presence we have established in Yorkshire in recent years and provides a compelling platform for future organic growth in the North East, as we cement our position as the leading legal and professional services business outside London.”
Separately, Knights said that it had agreed a £60m revolving credit facility HSBC Ƶ, Allied Irish Bank and Lloyds Bank, replacing a smaller facility at effectively the same interest cost.
