Brewin Dolphin lined up for £1.6bn takeover

Wealth management specialist Brewin Dolphin is set to be acquired after an offer which values the long-established business at £1.6bn was recommended to shareholders. Brewin Dolphin has a network of more than 30 offices in the UK and Ireland.

With a heritage which traces back to 1762, originally as a provider of stock-broking services, Brewin Dolphin today has 2,186 employees, including just under 1,300 members who are directly focused on client service.

RBC Wealth Management (Jersey) Holdings, an indirect wholly-owned subsidiary of Royal Bank of Canada, has made an offer of 515 pence per share to acquire Brewin Dolphin.

After receiving advice from Barclays and Lazard, the Brewein Dolphin directors have said they consider the terms of the acquisition to be fair and reasonable.

Robin Beer, chief executive of Brewin Dolphin, said: “The Brewin Dolphin board is pleased to recommend the offer by RBC in the interests of our shareholders, our clients, our people and our business partners. Building on the strong organic growth that we have achieved to date, the combined business will create an attractive platform for future growth.

“As part of RBC we would be able to provide our clients with a broader range of products and services, and expand our distribution channels through leveraging RBC’s global presence. We share complementary values which emphasise the importance of long-standing client relationships and an inclusive culture supportive of employees and local communities.”

Doug Guzman, group head at RBC Wealth Management, RBC Insurance and RBC Investor and Treasury Services, added: “The UK is a key growth market for RBC, and Brewin Dolphin provides us with an exceptional platform to significantly transform our wealth management business in the region, giving RBC Wealth Management a #3 market position in the UK and Ireland, in addition to being a market leader in Canada, with a growing position in the United States.

“By combining two highly complementary businesses, we will increase the depth and breadth of our services and position the combined business as a premier integrated wealth management provider to private and institutional clients.”

RBC Capital Markets is acting as exclusive financial adviser to RBC.

Norton Rose Fulbright LLP is acting as legal adviser to RBC and Bidco in connection with the acquisition.

Travers Smith LLP is acting as legal adviser to Brewin Dolphin in connection with the acquisition.