Gresham House scoops up forestry-focused investment firm FIM for £25m
Alternative asset manager Gresham House today made its largest acquisition ever, grabbing forestry- and renewables-focused investment house FIM for up to £25m.
FIM had £893m in assets under management, bringing the total now held by Gresham to more than £1.5bn.
Gresham House, which will continue to focus on forestry, new energy, UK housing and infrastructure, private assets and strategic public equity, will initially pay £21m for the business.
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This will include £11.2m of cash and £9.8m of loan notes to be converted into Gresham House shares. A further £4m will be paid if performance conditions are met by two years after the deal.
“The acquisition of FIM will allow Gresham House to achieve scale and establish a market leading position as an investor in UK commercial forestry, whilst also enhancing the Gresham House New Energy division," said Gresham House's chief executive Anthony Dalwood.
The deal is Gresham's third in as many years, and helped the firm's share price rise by almost three per cent during the day.
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Gresham, which is listed on London's junior Aim market, also announced it would raise up to £15m to help finance the deal by placing new shares. Any leftover cash could be used for more acquisitions, the company said, and Liberum will act as broker.
The firm's current shareholders include names such as the Berkshire Pension Fund, Majedie, River & Mercantile, Saffie Investments (the family office of private equity veteran and Damon Buffini), Charles Stanley and the Alliance Trust.
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