Raymond James to acquire entire share capital of Charles Stanley

US firm Raymond James Financial has announced its offer for the entire share capital of Charles Stanley Group. The offer stands at a price of £5.15 per share, or approximately £279 million. The transaction, subject to FCA and Charles Stanley shareholder approval, will close around the calendar fourth quarter of 2021.

The acquisition will give Raymond James a foothold in the UK market. The purchase will bring Raymond James nearly 200 wealth managers and £27 billion client assets from Charles Stanley.

Raymond James Investment Services (RJIS), which recently opened a branch in Cheltenham and Cheshire, will continue to operate in the U.K. as a separately branded and managed subsidiary of Raymond James. The acquisition will not create a significant restructuring or result in the need for staff reductions at either firm.

Raymond James CEO Paul Reilly said:

“We have long admired Charles Stanley’s reputation, heritage and its talented pool of wealth managers and professionals. The two firms share a client-centric approach whereby the primary client relationship is held by the individual wealth managers. We both offer employed and self-employed affiliation models. Meanwhile, Raymond James also provides platform services, enabling the flexibility that wealth managers value. Further, Charles Stanley meets Raymond James’s historical acquisition criteria, in particular as an excellent strategic fit with a complementary culture.”

Raymond James expects Charles Stanley to continue operating as a separately branded firm. Therefore, it will operate as a stand-alone division and subsidiary maintaining its existing offices throughout the U.K. Sir David Howard, Charles Stanley’s former Chief Executive and current Chairman, will remain Chairman of Charles Stanley. Paul Abberley and Ben Money-Coutts will continue as Charles Stanley’s Chief Executive Officer and Chief Financial Officer, respectively. Peter Moores, Raymond James U.K.’s Chief Executive Officer will have overall responsibility for the respective U.K. businesses of Raymond James and Charles Stanley. Other than Sir David Howard, Raymond James expects to replace some or all of Charles Stanley’s other non-executive directors following the completion of the Acquisition.

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