Fairpoint Group extends AIB finance facility to acquire law firm

Financial services provider Fairpoint Group has expanded its business by acquiring law firm Colemans-CTTS.

The deal, settled for an initial consideration of £9m, will also see the Lancashire-headquartered company acquire CT Support Services Limited and Holiday TravelWatch Limited. Fairpoint will use its current financing facilities and net cash balances to fund the initial consideration.

To ensure it has access to appropriate funding once the acquisition process is complete, Fairpoint has extended its existing £20m five-year debt facility with Allied Irish Banks to £25m.

The CEO of Fairpoint, Chris Moat, said: “The acquisition of Colemans is an important step in the development of the Group’s fast-growing legal services platform.

“It brings particular class-leading expertise in the areas of volume personal injury, conveyancing and travel services and gives strong impetus to our agenda of reshaping the Group towards a broader professional services organisation.”

He added: “The acquisition is expected to be earnings enhancing on an adjusted basis and will raise the consumer legal services segment to 62% of Group revenues on a pro forma basis. We are delighted to welcome our new colleagues to the Group.”

The company is expecting to have a net debt of £13.2m immediately following the acquisition, with approximately £1m in professional, legal and integration costs to be incurred during H2 2015.

Janet Tilley, a managing partner with Colemans, commented: “We share Fairpoint’s vision of a rapidly evolving consumer legal services market and are pleased that this has presented the opportunity for Colemans to become part of a larger and dynamic Group, leading the transformation of this industry segment.

“We expect to take advantage of being part of a larger platform with a strong focus on process. We are delighted to become part of the Fairpoint Group.”

In the 12 months ending April 30 this year, Colemans generated unaudited pre-tax profits of £2.3m. Fairpoint has estimated that if it had owned the law firm during the period, Colemans’ consolidated EBITDA would have reached £2.5m.

Colemans, which was established in 1984, currently has more than 200 employees spread across offices in Manchester, Acton and Kingston upon Thames. At the close of its last financial year in April, its unaudited gross assets were worth £18.4m.

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