Leicester-based wealth and asset management business Mattioli Woods plc has announced the acquisition of Edinburgh-based Caledonia Asset Management Limited from its shareholders.

The transaction is being made in cash and shares for “an initial consideration of £0.96 million and potential further consideration of up to £0.64 million dependent on the attainment of specified performance targets in the two years after completion.”

Gordon Forbes and Pauline Forbes, Caledonia’s Directors, said: “This is a very positive step for everyone associated with Caledonia, especially our clients and employees. 

“Mattioli Woods shares our core values and client centred business ethos and so we are delighted to become part of the Mattioli Woods Group.

“Combining our strengths will allow Caledonia’s clients and employees to benefit from the considerable additional resources and support available as part of the group, enabling our team to enhance and expand the bespoke personal service our clients expect from us. 

“We are very much looking forward to this exciting new phase”.

Mattioli Woods said: “Founded in 2000, Caledonia provides wealth management services to affluent individuals and families, encompassing lifestyle financial planning, pensions and retirement planning, ISAs, life assurance, critical illness, income protection and personal tax planning.  

“Working with circa 150 private clients with over £55 million of assets under advice, Caledonia is based in Edinburgh and employs an experienced team of five staff, all of whom will remain with Mattioli Woods following completion.  

“In the year ended 31 December 2020, Caledonia generated revenues of £0.45 million with a profit before taxation of £0.18 million. 

“At 31 December 2020, Caledonia’s gross assets were £0.27 million and net assets were £0.19 million.  The acquisition is expected to be earnings enhancing in the first full year of ownership.”

Ian Mattioli, CEO of Mattioli Woods, said: “We are delighted to welcome Gordon, Pauline and their experienced team as part of Mattioli Woods. 

“Caledonia is a great fit for us both culturally and operationally, serving a similar client base to that of our existing business.  

“This is an important strategic step for the group, extending the geographic footprint of our wealth management business in Edinburgh.”