20/10/2014
Old Mutual Wealth acquires Quilter Cheviot
The South African Old Mutual group on 17 October announced that its British retail asset management affiliate Old Mutual Wealth has reached an agreement to acquire Quilter Cheviot, the second-largest British independent wealth management firm, for a total of over GBP585m. The operation, which is pending the approval of regulatory authorities, may be completed in first quarter 2015. “This acquisition will bring us strong capacity for discretionary asset management, which will accelerate the strategy of Old Mutual Wealth to build a vertically integrated wealth management activity, with GBP92bn in assets under management,” Old Mutual says in a statement.Through the operation, the group claims that it expects to earn a total return on equity (RoE) of 12% to 15%, and to generate annual synergies of GBP15m until 2017. The operation will allow Old Mutual Wealth to significantly extend its client base and to boost its assets. As of the end of September 2014, Quilter Chetiot had 38,000 clients, with GBP16.2bn in assets under management. “Quilter Cheviot has filled a signicant gap in its activities, which will now allow us to better serve our affluent and high net worth clients,” says Paul Feeney, CEO of Old Mutual Wealth, in a statement.As part of the operation, Martin Baines, currently CEO of Quilter Cheviot, will join the executive board at Old Mutual Wealth, and will report to Paul Feeney.
