Mattioli Woods has bought a 50.1 per cent stake in Lincoln-based White Mortgages for £425,000.
The deal announced this morning (April 27) sees Mattioli Woods enter an agreement with the firm’s owner, Steven White and its two shareholders, Mark Sutton and Robert White whereby Mattioli Woods is able to acquire the remaining 49.9 per cent of the firm.
This call option will be exercisable by Mattioli Woods at any time during a two year period beginning on April 27, 2026.
If Mattioli Woods does exercise the call option, the amount payable will be up to £2.625mn, dependent on the performance of specified targets in the year prior.
Commenting on the deal, Mattioli Woods group managing director Michael Wright said it is a step forward in the group’s continued expansion.
“Over the past six-months we have seen significant changes in the economy, none more so than immediately after the government's mini-budget last September and the impact it had on the mortgage market, with a leap in mortgage interest rates, the withdrawal of many mortgage products and a rapid tightening in lenders' underwriting criteria.
“By bringing Steve and his team into the group, we are better positioned to help those clients looking to finance a new property purchase or refinance existing lending,” Wright said.
Set up in 2011, White Mortgages specialises in providing independent mortgage advice. The firm also offers bespoke protection advice.
The firm employs four advisers and five administrative staff, all of whom will remain with Mattioli Woods following completion of the deal.
In the year ended 31 March 31, 2023, White Mortgages generated revenues of £680,000 with a profit before taxation of £350,000.
The acquisition is expected to be earnings enhancing in the first full year of ownership.
White Mortgages director, Steven White said: "We are very excited to partner with a like-minded management team with high growth ambitions.
“The sale will help accelerate our growth plan by broadening our proposition with the support of Mattioli Woods. We will continue to place integrity; reliability and a commitment to excellence at the heart of our business."
The announcement follows a number of acquisitions by Mattioli Woods after the group announced in September that it was “on the hunt” for further purchases.
In 2021, the group agreed deals worth £143mn which boosted its revenue by more than 70 per cent.
Just last week, it was announced that Mattioli Woods bought 100 per cent of the share capital of Doherty Pension & Investment Consultancy in Northern Ireland for a total consideration of up to £15mn.
jane.matthews@ft.com
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