Business
Acquisition of Thursfields Legal Limited
Acquisition of Thursfields Legal Limited.
About this update from Knights Group Holdings Plc
[{"type":"text","content":"\n\nKnights Group Holdings plc\n(\"Knights\" or the \"Group\")\nAcquisition of Thursfields Legal Limited\n \nSignificantly strengthens West Midlands presence\nKnights today announces that it has agreed to acquire Thursfields Legal Limited (trading as \"Thursfields\" and \"Thursfields Solicitors\"), a premium, full service legal services business with offices across the West Midlands.\nAcquisition rationale and background\nFounded in 1878, Thursfields is an independent, full-service regional law firm with offices in Worcester, Kidderminster, Solihull and Birmingham. Since inception, Thursfields has transformed from a traditional law firm into a corporatised, premium provider of legal services to a national client base.\nThe firm has a strong Private Wealth offering, spanning Private Client, Family and Residential Property, alongside Corporate, Real Estate and Dispute Resolution services. The acquisition sees 101 fee earning professionals join Knights and significantly strengthens the Group's presence in the West Midlands.\nThe acquisition is well-aligned with Knights' strategy to bolster its future organic growth through selective, considered acquisitions. It further extends Knights' existing capabilities in Private Wealth, while bringing a high-quality team and national client base, which will benefit from Knights' wider range of services and its established platform.\nIn its unaudited accounts for the year ended 30 April 2024, Thursfields reported revenue of £11.2m and a PBT margin of circa 25%. Following full integration and realisation of synergies, the Board expects it to contribute a PBT margin of circa 30%. Accounting for a typical level of revenue attrition post-acquisition, the acquisition is expected to be immediately earnings enhancing.\nTerms of the acquisition\nUnder the terms of the acquisition, Knights will acquire Thursfields Legal Limited from its ten shareholders on a debt free, cash free basis, for a total consideration of c.£12.5m. This comprises initial cash consideration of c.£7.5m and deferred cash consideration of £5.0m to be paid in three equal instalments on each of the first, second and third anniversaries following completion. The cash consideration will be satisfied from Knights' existing banking facilities. Completion is expected to take place on 14 September 2024.\nCommenting on the acquis...