Wealth manager AFH Financial Group has completed the acquisition of Hertfordshire-based AE Garment Independent Financial Services Limited in a deal worth £1.7million. The firm boasts a broad range of HNW clients, ranging from business owners and entrepreneurs involved in the sports, media and entertainment industries.
The current company director, Tony Garment will retire after the deal is complete, and his client base of more than 200 clients will move to existing AFH advisers.
AFH has paid an initial cash fee of £880,000 to buy AE Garment Independent Financial Services Limited. A further two payments worth up to £880,000 will be due over the following 26 months depending on AE Garment Ltd meeting performance targets.
Alan Hudson, chief executive of AFH, said: “Our fifth acquisition of the year strengthens our position in the home counties and underlines our commitment to growth. At the same time, we are helping retiring independent financial advisers to find the right home for their clients.
“I wish Tony all the best for a long and happy retirement. He can certainly rest assured his clients will be well looked after by the team at AFH.”
Tony Garment said: “After 28 years in the financial planning industry it’s time for me to take some down time and turn my attention to new interests. AFH is absolutely the right fit for our clients and I have the upmost confidence they will do an excellent job in the years to come.”
The acquisition comes after AFH revealed that it planned to issue convertible loan stock in order to raise £20m for the purpose of financing further acquisitions, subject to shareholder approval. The convertible loan stock will be issued in denominations of £5000, which can be converted to shares in the firm within five years, at an interest rate of 4 per cent.
Mr Hudson commented: “On the basis of our results and the opportunities identified, we look forward to continuing to deliver continued profitable growth in the second half of 2019 and beyond.
“The overarching strategy of the company continues to be to generate long term value for shareholders by driving revenue growth and margin expansion while providing exceptional value and service to our clients, using our increasing size to drive down platform and fund management charges aligned to an appropriate risk-based investment model.”
