Wealth and asset management specialist Mattioli Woods has taken a 50.1 per cent stake in Lincoln-based White Mortgages – with a two-year option to buy the remaining stake.
Leicester-headquartered Mattioli Woods has put £425,000 into the deal with director Steven White. Under the arrangement it also has 24 months to exercise an option to pay £2.625 million for the rest of the business, depending on the mortgage company hitting set targets over the coming year.
White Mortgages was founded in 2011 and provides independent mortgage advice. It has nine staff, comprising four advisers and five administrative staff, who will all stay with Mattioli Woods following completion.
In the year to March 31, it generated revenues of £680,000 with a profit before taxation of £350,000. Mattioli Woods said the acquisition was expected to be “earnings enhancing” in the first full year of ownership.
Mattioli Woods group managing director Michael Wright said the investment was an exciting extension to its existing client proposition and another step forward as they continue to expand operations.
He said: “Over the past six-months we have seen significant changes in the economy, none more so than immediately after the Government's mini-budget last September and the impact it had on the mortgage market, with a leap in mortgage interest rates, the withdrawal of many mortgage products and a rapid tightening in lenders' underwriting criteria.
“By bringing Steve and his team into the group, we are better positioned to help those clients looking to finance a new property purchase or re-finance existing lending.”
Steven White said: “We are very excited to partner with a like-minded management team with high growth ambitions.
“The sale will help accelerate our growth plan by broadening our proposition with the support of Mattioli Woods.
“We will continue to place integrity; reliability and a commitment to excellence at the heart of our business."
It comes one week after Mattioli Woods announced it had bought Doherty Pension & Investment Consultancy, in Northern Ireland, in a deal valuing it at up to £15.048 million.
