Liontrust (LIO) Acquisition presentation summary

Strategic rationale and acquisition overview

• Acquisition of River Global Holdings Limited (RGH) is a bolt-on transaction aimed at enhancing investment talent, broadening client base, and expanding distribution opportunities.

• RGH brings complementary investment styles and strong performing funds, diversifying the product range and meeting client demand for new strategies.

• The deal introduces new institutional and wholesale clients, as well as strategic partners in the UK and internationally.

• Martin Gilbert will join the Board as a Non-executive Director, adding significant industry expertise.

• RGH shareholders will take equity in the acquiring entity, demonstrating commitment to the combined business.

Financial impact and integration

• The acquisition is expected to deliver material earnings per share (EPS) accretion, with annualised cost synergies of £7.5m.

• Pro forma assets under management and advice (AuMA) will increase by £2.7bn to £24.4bn.

• RGH is close to breakeven on a run-rate basis, with cost synergies moving the business into profitability and targeting operating margins of around 50%.

• Reorganisation costs are estimated at £12.5m, with transaction costs of £1m, both treated as exceptional items.

• Integration will be swift, with no disruption to fund managers or clients, and RGH employees relocating to existing offices.

Distribution, brand, and growth potential

• Combining RGH’s strong fund performance with the acquirer’s brand and distribution is expected to create significant sales opportunities.

• The acquiring entity is highly ranked for brand familiarity, communications, and client service among advisers and wealth managers.

• RGH funds will be introduced to a wider client base, leveraging high levels of client activity and differentiated investment styles.

• The acquisition supports strategic objectives of product diversification and broadening distribution.

• No change to the existing share buyback programme.