--adds broker comment--
Wealth Manager European Wealth (LON:EWG) has added two more businesses as part of its buy and build strategy.
Switzerland-based P&C Global Wealth Managers and its associate GTI Fund Investment have been snapped up for a maximum £2.76mln to be paid almost all in two tranches of shares.
P&C has approximately £92mln of discretionary funds under management, while Cayman Islands-based GTI offers a range of funds advised by P&C. The consideration is the equivalent is 3% of funds under management.
P&C founders Iain Little and Bruce Albrecht are investment management veterans with experience at Pictet and Blakeney in Little’s case, while Albrecht was chief investment officer at NM Rothschild previously.
Revenues for the two companies in 2013 were approximately £401,000 with a loss of £129,000.
Iain Little will join European Wealth's subsidiary European Investment Management Limited while Bruce Albrecht will be a consultant.
John Morton, European Wealth’s chief executive, said the deals were an important step forward in European Wealth's evolution.
“We are delighted by the cultural fit between European Wealth and P&C's business, which is based on the fundamental belief of delivering personal service to clients, irrespective of their portfolio size.
“The acquisitions also give the opportunity to expand its international presence and service funds from established wealth management centres both in Europe and the Middle East, he said.”
Broker Daniel Stewart said the deal was “distinctly positive for EWG”.
“The acquisitions are strategically attractive, management is delivering on its strategy and the price paid is reasonable at 3% of funds under management (FUM).
Euroopean wealth’s market cap as a % of FUM is 1.7% or 3% fully diluted, said Stewart, which looks undemanding, it said. Buy with a target price of 140p is its recommendation.
Shares were 104p today.