Listed UK firm Knights acquisition spree continues unabated
Under its ambitious nation-wide growth strategy, Knights acquire Sheffield-based Keebles for £11.5 million
The UK-based legal and professional services firm Knights is moving ahead with its plans to acquire Sheffield-based independent commercial law firm Keebles.
The deal will increase the AIM-listed outfit’s location count in the UK to 17. Knights by now have four offices in Yorkshire. Acquisition of Keebles for £11.5 million is part of Knights’ ambitious strategy of nationwide growth to become the largest legal and service firm outside of London.
Last year, Knights spread its wings by opening a York office in January followed by acquiring Leeds-based law firm Shulmans for £20.1 million in March. It purchased South East-based firm ASB Law for £8.5 million and consolidated its position by acquiring independent Surrey outfit Mundays for £5.3 million in April 2021.
According to details of the deal coming in, Knights will acquire Keebles from its 10 equity partners on a debt-free, cash-free basis. While it will pay £8.4 million of the total deal value of £11.5million, made up of £4.9 million in cash and £3.5 million in shares, the remaining £3.1 million is to be paid in cash over the two years.
The deal is expected to be completed in June 2021. It will bring Keebles’ 138 fee earners on Knights’ roster in Sheffield, augmenting its existing Yorkshire network and complementing its existing presence in Nottingham and Leeds.
Keebles specialises in corporate and real estate matters. In its unaudited accounts for the year ending 30 April 2020, it reported revenue of £12.7 million which is expected to witness a slight dip this year. Keebles expects a pre-tax profit of 5 per cent for 2021. Knights are confident of increasing it to 18 per cent following a full integration and realisation of all synergies.
“Having grown our position significantly in Leeds and York, Keebles provides us entry into the important city of Sheffield and the wider South Yorkshire area, allowing us to join up our presence across the region and execute our ambition to become the leading legal and professional services business outside London,” Knights CEO David Beech said.
Paul Trudgill, Keebles’ corporate partner, agreed with Beech’s sentiment.
“Having grown to become a leading law firm in South Yorkshire, we are delighted to be joining Knights as it executes its ambitious expansion plans and look forward to thriving as part of a larger group,” Trudgill said, terming deal with Knights as the next logical step in Keebles’ growth journey.