IFG Group, the parent of James Hay, has been sold to London-based private equity firm Epiris for £206m.
The valuation of IFG at £206m is twenty times the value of the firm’s after-tax earnings.
Shareholders of IFG will be offered a 46 percent premium on IFG’s share price, with 193p in cash per share.
CEO of IFG, Kathryn Purves, spoke optimistically about the sale: “The offer by Epiris represents a compelling opportunity for shareholders to realise an immediate and attractive cash value for their shareholding in IFG today. In addition, our employees and clients will benefit under the ownership of Epiris which should help accelerate the delivery of IFG’s strategic objectives and the underlying strategies of James Hay and Saunderson House.”
Owen Wilson of Epiris also commented on the transaction: “We are delighted that the board of IFG has recommended our offer and we are excited to work with management to realise the growth potential of James Hay and of Saunderson House and to further enhance their position in their respective markets. James Hay, a trusted provider in the Sipp market, and Saunderson House, a differentiated independent wealth manager, both have strong reputations across their broad range of clients”.
