Close Brothers Group has agreed to sell its wealth management business, Close Brothers Asset Management (CBAM), to funds managed by Oaktree Capital Management for up to £200m.
In a stock exchange notice today (19 September), Close Brothers said the equity value of up to £200m represents a multiple of 27x CBAM's statutory operating profit after tax for the year to 31 July 2024, and includes a £28m of contingent deferred consideration in preference shares. The group will retain all upfront cash proceeds from the sale, around £172m – of this, a cash consideration of £146m will be paid on completion and a dividend of £26m will be paid by CBAM to Close Brothers on or before completion. The contingent consideration will be redeemable "no later than Oaktree's exit...
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