Business
Acquisitions of St James Law and Baines Wilson
Acquisitions of St James Law and Baines Wilson.
About this update from Knights Group Holdings Plc
[{"type":"text","content":"\n\n2 May 2023\nKnights Group Holdings plc\n(\"Knights\", the \"Company\" or the \"Group\")\nAcquisitions of St James Law Limited and Baines Wilson LLP\nStrengthens Knights' presence in the North, providing entry into Newcastle and Carlisle\nKnights today announces that it has agreed to acquire St James Law Limited (trading as St James' Square), a Newcastle-based commercial law firm, and Baines Wilson LLP (Baines Wilson) an independent law firm headquartered in Carlisle.\nSt James' Square\nSt James' Square is an independent full service commercial law firm located in Newcastle, the financial centre of the North East of England. The acquisition brings 23 fee earners to Knights and provides entry into Newcastle, an important strategic location which complements the Group's existing Teesside presence. The business also currently includes a debt recovery business (accounting for just under 20% of company revenues); strategic options for this business, which is considered non-core to Knights, will be reviewed following completion.\nIn its unaudited accounts for the year ended 31 December 2022, St James' Square reported revenue of £2.4m and a corporatised PBT margin, excluding the debt recovery business, of circa 5%. Accounting for a typical 20% revenue churn post-acquisition, the Board expects the acquisition to be immediately earnings enhancing, with St James' Square expected to contribute an adjusted PBT margin of circa 15% post synergy savings.\nUnder the terms of the acquisition, Knights will acquire St James' Square from its four existing owner-managers, two employees and an investor on a debt free, cash free basis, for a total consideration of £1.75m. This comprises an initial cash consideration of £0.5m, with deferred payments of £1.25m to be paid as £0.7m on the first and £0.55m on the second anniversary following completion in each case subject to the satisfaction of certain conditions. Completion is expected to take place on 16 June 2023.\nBaines Wilson\nBaines Wilson, which was founded in 1999, has grown into one of the leading commercial law firms in the North West of England. Operating primarily out of Carlisle, with an additional smaller office in Lancaster, Baines Wilson is a specialist business law firm, offering Corporate, Real Estate, Dispute Resolution and Employment services. The acquisition provides entry into Ca...