Gordon Dadds announces takeover of Bristol solicitors firm Metcalfes in £2m deal
Gordon Dadds Group plc, the London-based legal and professional services business, has completed the acquisition of Bristol solicitors firm, Metcalfes Solicitors LLP.
The takeover is being completed with Gordon Dadds paying a basic consideration of £2m, over a five year period.
Gordon Dadds’ said that it expects the acquisition to be “significantly earnings enhancing in the first full year, to 31st March 2019.”
Metcalfes is a firm of general practice solicitors based in Bristol. Its largest areas of activity are clinical negligence, property, non-volume personal injury, private client and family and dispute resolution work from a generally high net worth individual and corporate client base.
Metcalfes recently acquired certain assets of Burroughs Day LLP from administrators. Burroughs Day was also a Bristol solicitors firm with offices very close to those of Metcalfes.
Gordon believes that this enlarged Metcalfes Solicitors should generate annual fee income of at least £4m.
The sellers of Metcalfes have warranted that the fee income of the enlarged Metcalfes’ business will be not less than £20m over those five years. If the fee income falls short of the £20m over this period, then the total consideration will also be reduced.
Should the fee income exceed £20m, Gordon Dadds will then pay an additional consideration. However, total consideration is capped at £6m.
Adrian Biles, chief executive officer of Gordon Dadds, said: “Metcalfes is a profitable and very well regarded firm of solicitors in Bristol with whom we have worked to integrate the Burroughs Day business.
“We are confident that the enlarged business can be developed into a significant as well as a respected and highly profitable business under the leadership of Anthony Heath and his team.
“Bristol complements Gordon Dadds’ other locations and is a fertile area for developing a high quality offering to corporate and private clients.
“This deal closely follows the Group’s recent acquisition of White & Black Limited, a growing specialist technology solicitors firm. We continue to have a strong acquisition pipeline which we expect will enhance earnings and the reach of the Group even further.”
Anthony Heath, managing artner of Metcalfes, added: “The opportunity to acquire the business of Burroughs Day and to work with their team and clients is an exciting and major step forward for Metcalfes.
“In addition, being a member of the Gordon Dadds Group will enable our enlarged team to extend the range and depth of the services we are able to offer our clients.”