Business
Caledonia signs agreement to sell 7IM
Caledonia signs agreement to sell 7IM.
About this update from Caledonia Investments Plc
[{"type":"text","content":"\n\n\n \n \nCALEDONIA INVESTMENTS PLC\n \nCALEDONIA PRIVATE CAPITAL SIGNS AGREEMENT TO SELL 7IM\n \nCaledonia Investments plc (\"Caledonia\") is pleased to announce that it has agreed terms for the sale of its majority stake in Seven Investment Management (\"7IM\"), a vertically integrated retail wealth management business, to Ontario Teachers' Pension Plan Board (\"OTPP\"), a global investor with approximately C$250 billion in net assets. \n \nThe transaction is subject to change in control approval by the Financial Conduct Authority and is expected to complete in late 2023 or early 2024.\n \n7IM was acquired by Caledonia in September 2015 and has since grown strongly both organically and through acquisition. Supported by Caledonia, 7IM has continued to invest in its market leading proprietary platform service and has expanded its direct to consumer offering via multiple strategic acquisitions. Today 7IM is a highly client-centric, vertically integrated wealth management business, which encompasses an award-winning platform and leading multi-asset investment management capabilities, led by CEO Dean Proctor.\n \nSubject to the exact timing of completion, Caledonia is expected to receive cash proceeds of c.£255m, net of transaction expenses, for the sale of its ordinary and preference shares in 7IM. The cash proceeds will be held on deposit for future investment. In its audited accounts as at 31 March 2023, Caledonia's shareholding in 7IM was valued at £187.1m excluding a further £13.2m which will be invested into the business prior to completion.\n \nCommenting on the sale, Tom Leader, Caledonia's Head of Private Capital, said:\n \n\"In the eight years since our acquisition of 7IM in September 2015, the business has more than doubled assets under management, nearly trebled headcount, and significantly enhanced its revenue and profitability. Caledonia's investment philosophy is to focus on growth over the long term, ensuring that our portfolio companies are well placed for exit when the right time comes for all stakeholders. Our investment in 7IM embodies this philosophy and we are delighted with what Dean and his team have achieved during our partnership. We thank and congratulate them for their stewardship of the business and wish them every success in their new partnershi...