London-based wealth management specialist Rathbone Brothers has sold its trust operations in Jersey to its management team.
The acquirers, who formed Hawksford Holdings to complete the deal, were supported in the transaction by private equity firm Dunedin.
On completion Hawksford paid £23.5 million in cash for Rathbone Trust Company Jersey and Rathbone Jersey. The terms of the agreement include a deferred payment to be made in loan notes.
Hawksford is also in negotiations to buy Rathbone’s Singapore-based trust company, Rathbone Trust (Singapore). If the deal is approved, Rathbone will receive £500,000 in cash.
Rathbone chief executive Andy Pomfret said: “As we stated in the half-year results in July, we believe that in the changing climate for the use of offshore structures and services that these businesses are best owned offshore by their management.”
He added that the transaction strengthens the group’s capital base. “This means we are ideally placed to consider the acquisition opportunities that are likely to be seen by our core investment management business in these turbulent market conditions.”
In the year to January 2008, the trust businesses in Jersey and Singapore contributed £4.7 million to Rathbone’s pre-tax profits. At the same date their combined assets were £38.5 million.
