Hichens, Harrison & Co plc

Hichens, Harrison & Co plc acquires ARM Corporate Finance Limited

 

8 August 2007

 

Kerman & Co acted for Hichens, Harrison & Co plc (the “Company”), the City of London’s oldest firm of stockbrokers, in its acquisition of Arm Corporate Finance Limited (“ARMCF”), for a combination of cash and shares.  The entire issued share capital of ARMCF of 10,000 ordinary shares is being acquired by acquisition of 5,000 shares from Alan Mackenzie and the acquisition of Oakleigh Renown Limited which holds 5,000 shares.

 

The consideration for the acquisition is £4.327 million and is to be settled by the issue of 832,192 ordinary shares in the Company and the payment of £1,360,000 in cash installments over a 12 month period from the date of completion (such installments as follows: £650,000 at completion, £250,000 6 months after completion, and £460,000 12 months after completion).  The second cash installment may be adjusted up or down depending on the level of the net asset value of ARMCF at Completion.   Additionally there is an earn out provision whereby additional consideration will be payable if ARMCF achieves profit before tax that exceeds £330,000 for the 12 month period to 30 April 2008.

 

ARMCF is currently appointed as nominated advisor to 19 AIM–quoted companies. Additionally it is a member of the London Stock Exchange, and a UK Listing Authority registered sponsor.

 

Hichens, Harrison’s Chief Executive Officer Adam Wilson commented:

 

“We believe this acquisition will be complementary to the existing businesses of Hichens, Harrison’s group, including in the future our own recently approved Nominated Adviser, Blomfield Street Securities, and will help us advance towards our objectives of becoming the broker of choice for small to medium sized companies and building up an international diversified merchant banking group.”