Wealth manager Brewin Dolphin (BRW) is paying £26m for an investment management division owned by conglomerate Camellia (CAM:AIM) as it looks to put a £175m cash pile to work.

The Duncan Lawrie Asset Management (DLAM) unit is part of Camellia’s private banking business and has £735m in assets under management alongside 1,000 client relationships.

Analysts say the deal highlights Brewin’s growth potential as it looks to deploy some of its excess capital.

Brewin final


‘We believe that today’s acquisition of DLAM is an effective use of Brewin’s surplus capital and further indication that management is now firmly focused on growing the business,’ writes RBC analyst Peter Lenardos.

‘Further, the acquisition reinforces our positive thesis on Brewin, and we believe that investors at the current level are exposed to an attractive valuation, high dividend yield and growth.’

DLAM will contribute around £6.2m in annualised revenue, according to Leonardos, and around £3.7m in pre-tax profit.

Shares in both Brewin and Camellia trade higher after the deal. Bewin is up 3% at 298p and Camellia also trades 3% higher at £102.49.

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Issue Date: 19 Dec 2016