Caledonia completes Stonehage Fleming deal – Caledonia Investments announced in December 2018 that it had agreed to acquire a minority stake in Stonehage Fleming & Family Partners Limited. Stonehage Fleming is a leading independently owned family office. The deal was structured as part of a tender offer and share buy-back offer made to Stonehage Fleming’s existing shareholders and was conditional on obtaining regulatory approvals in a number of jurisdictions. Caledonia says that these approvals have now been received and accordingly the transaction has been completed.
Stonehage Fleming was formed in 2015 through the merger of Stonehage Group and Fleming Family & Partners. Stonehage Fleming is the largest family office in Europe, Middle East and Africa and the second largest non-bank provider of family office services globally, a market which is estimated to be growing at around 9% per annum, driven by the rising demand of ultra-high net worth families for assistance in the organisation of their wealth.
Caledonia has acquired a 36.7% equity stake in Stonehage Fleming for £89.3m, with additional deferred consideration of up to a maximum of £20.6m payable contingent on Stonehage Fleming achieving certain financial targets for its years ending 31 March 2020 and 2021. As part of the original agreement, Caledonia had committed to underwrite a £30m term loan facility for Stonehage Fleming to part-fund the tender and share buy-back offers. This commitment is no longer required as the term loan has been put in place with a syndicate of international banks prior to completion.
CLDN : Caledonia completes Stonehage Fleming deal