Gresham House, the specialist alternative asset manager, has acquired FIM Services, a specialist in sustainable real asset investment, for a total consideration of up to £25m on a cash-free, debt-free basis (subject to certain adjustments).
FIM has AUM of approximately £893m which covers forestry and renewable energy. The deal takes Gresham House’s AUM to over £1.5bn. The combined Group’s forestry assets will exceed 100,000 hectares and renewable energy assets under management increase to £344m across a range of wind and solar to complement its energy storage systems.
The company also announced a Proposed Placing of new ordinary shares to raise approximately £15m.
Gresham House will pay an initial consideration of £21m comprising £11.2m in cash and £9.8m in loan notes. Further deferred consideration of up to £4m will be payable by the Company, subject to the satisfaction of certain performance targets being met.
The proposed conditional placing of new ordinary shares in the Company is at 410 pence per Placing Share, raising approximately £15m before expenses. The proceeds of the Placing will be used to satisfy, in part, the cash consideration of the acquisition.
Anthony Dalwood, Gresham House CEO said: “The acquisition of FIM will allow Gresham House to achieve scale and establish a market leading position as an investor in UK commercial forestry whilst also enhancing the Gresham
House New Energy division. Over the last three years, we have rapidly established Gresham House as a platform for growth for specialist asset management teams. The strategic rationale, alongside the potential financial returns, are clear and exciting for Gresham
Richard Crosbie Dawson, Managing Director of FIM added: “Gresham House is the ideal home for FIM’s next stage of growth. Tony and his team have a proven track record in successfully integrating
businesses and our own integration planning is already underway. We have a complementary client base to Gresham House and our combined expertise and experience will facilitate new investment opportunities. We are excited about what the future holds.”