KNIGHTS GROUP HOLDINGS PLC

M&A Activity • May 4, 2021

National Storage Mechanism | Additional information

RNS Number : 3133X

Knights Group Holdings PLC

04 May 2021

Knights Group Holdings plc

("Knights", the "Company" or the "Group")

Acquisition of Keebles LLP

Knights further strengthens Yorkshire presence

Knights, the UK's fastest growing legal and professional services business 1, today announces that it has agreed to acquire Keebles LLP ("Keebles"), an independent commercial law firm primarily based in Sheffield.

Acquisition rationale and background

Established in Sheffield over a century ago, Keebles is a full-service independent law firm with a strong corporate and real estate offering, with a leading position in South Yorkshire. The acquisition sees 138 fee earners joining Knights, providing entry into Sheffield and complementing the Group's existing presence in Nottingham and Leeds.

The acquisition of Keebles strengthens Knights' presence in Yorkshire, in line with the Group's strategy to accelerate its organic growth through carefully targeted acquisitions which are a strong cultural fit.

In its unaudited accounts for the year ending 30 April 2020, Keebles reported revenue of £12.7m. It is budgeting revenue of £12.2m in the year to 30 April 2021, with a corporatised PBT margin of c.5% in 2021. Following full integration and realisation of all synergies, the Board expects Keebles to contribute a PBT margin of circa 18% which, combined with a typical level of revenue churn post-acquisition, means the acquisition is expected to be immediately earnings enhancing.

Terms of the acquisition

Under the terms of the acquisition, Knights will acquire Keebles from its ten existing equity partners ("the Sellers") on a debt free, cash free basis for a total consideration of £11.54m, subject to working capital adjustments at the time of completion. This comprises an initial consideration of £8.41m, made up of £4.91m in cash and £3.50m in 791,990 new ordinary shares in Knights (the "Consideration Shares"), along with deferred cash consideration of £3.13m to be paid in equal instalments over the two years respectively following completion. The cash consideration will be satisfied from Knights' existing facilities.  Completion is expected to take place on 11 June 2021.

Commenting on the acquisition, David Beech, CEO of Knights, said:

"We are delighted to announce the acquisition of Keebles, a business with an exceptional cultural fit and talented team of lawyers with a strong reputation across Yorkshire and beyond.

"Having grown our position significantly in Leeds and York, Keebles provides us entry into the important city of Sheffield and the wider South Yorkshire area, allowing us to join up our presence across the region and execute our ambition to become the leading legal and professional services business outside London."

Paul Trudgill, Partner, Keebles commented:

"The culture of Knights is closely aligned to Keebles, making it the natural home for our business as we enter the next stage of our growth journey. Having grown to become a leading law firm in South Yorkshire, we are delighted to be joining Knights as it executes its ambitious expansion plans and look forward to thriving as part of a larger Group."

- ENDS -

Notes

1 Ranked number one for revenue growth over the last four years in the recently published Lawyer's Top 100 Survey

2 The Lawyer's UK 200 report, 2020

Enquiries 

Knights
David Beech, CEO	via MHP Communications
Numis (Nominated Adviser and Broker)
Stuart Skinner, Kevin Cruickshank	+44 20 7260 1000
MHP Communications (Media enquiries)
Andrew Jaques, Katie Hunt, Rachel Mann	+44 20 3128 8100 knights@mhpc.com

Notes to Editors

Knights is a fast-growing, legal and professional services business, ranked within the UK's top 100 largest law firms by revenue. Knights was one of the first law firms in the UK to move from the traditional partnership model to a corporate structure in 2012 and has since grown rapidly. Knights has specialists in all key areas of corporate and commercial law so that it can offer end-to-end support to businesses of all sizes and in all sectors. It is focussed on key UK markets outside London and currently operates from 15 offices located in Birmingham, Cheltenham, Chester, Crawley, Exeter, Leeds, Leicester, Maidstone, Manchester, Nottingham, Oxford, Stoke, Weybridge, Wilmslow and York.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

ACQBFLFBFELZBBX