JLT Employee Benefits to Buy Corporate Unit of Close Brothers Asset Mgmt

JLT Employee Benefits has agreed to acquire the corporate business of Close Brothers Asset Management Limited for an undisclosed value.

JLT EB said the deal will boost its client portfolio and strengthen its market share in pension administration, investment consulting and actuarial advice. The transaction will see around 350 clients and around 40 employees move across to JLT EB further expanding its share in a market where it already has a strong presence.

JLT EB is one of the UK’s leading pension and benefit consultancies with more than 2,200 professionals throughout the UK.

Close Brothers Asset Management provides a range of financial advice, investment management and online investing services to private clients as well as professional advisers. The deal will see CBAM transfer all of its three corporate businesses to JLT EB, namely:

• Employee Benefit Solutions (EBS), which provides pension advice and DC (defined contribution) administration services,
• CPRM, which offers actuarial consulting and DB (defined benefit) administration, and
• TEAMS, which delivers investment advice and specialist consulting to DB and DC schemes.

Key leadership at the CBAM businesses, including Jonathan Black, Walker Yule, Fiona Cameron and Paul Chapple, are expected to take senior roles within JLT EB, under the leadership of JLT’s executive management team, while continuing to manage their current client portfolios.

Duncan Howorth, CEO, JLT Employee Benefits, said: “This transaction makes perfect sense commercially. It allows JLT EB to add scale to our existing pension related business which is central to our mid-term strategy. As a result, the deal will boost our client base and increase the assets on our investment management platform.

“From a client perspective, all three components of CBAM’s corporate businesses complement JLT EB’s existing offering. This means they will have access to our broader range of products and services following this transaction.

“We are also delighted to welcome the CBAM staff to JLT EB. I look forward to the valuable contribution that they will make to our business, adding to our existing pool of talent and expertise.”

Martin Andrew, chief executive officer of Close Brothers Asset Management, commented: “The sale of our employee benefits consultancy and actuarial business allows us to sharpen our focus on our private client financial advice and investment management business, given the significant industry changes and growth opportunities in this space at present.

“JLT is one of the world’s leading providers of employee benefits, and will be able offer these clients wider services for the future, making them the ideal fit for this business.”

Andrew said the sale does not impact CBAM’s Financial Education business, which “will continue to deliver the highest quality services to employers.”

JLT EB said it has a successful track record of profitably integrating acquisitions of this kind, having most recently bought Ensign Pension Admin Limited in 2014. Previous notable acquisitions include, Alexander Forbes Consultants and Actuaries in 2012 and HSBC Actuaries and Consultants in 2009.

Source: JLT Employee Benefits

Topics Mergers & Acquisitions