FRP Advisory Group acquires Hilton-Baird Group in £8.4m deal

FRP Advisory Group plc, a prominent national specialist business advisory firm, has announced the acquisition of the Hilton-Baird Group, a leading provider of commercial finance and risk management services. The acquisition, valued at approximately £8.4 million—including £7 million in cash and shares plus an additional £1.4 million based on net assets—marks a significant expansion for FRP Advisory. This transaction includes an initial cash payment of £5.6 million, the issuance of new ordinary shares valued at £2.8 million, and a performance-based earn-out over three years.

Enhancing Capabilities and Expanding Client Base

The Hilton-Baird Group, based in Southampton and operating nationally, brings a wealth of experience and a robust portfolio of services including commercial finance, credit insurance brokerage, and commercial debt collection. This acquisition is set to fortify FRP Advisory’s existing service pillars such as restructuring advisory and debt advisory, particularly critical in the current challenging economic climate.

Integration and Future Prospects

Post-acquisition, the Hilton-Baird Group will continue to operate under its established brand within FRP’s Debt Advisory pillar. The integration will see four of Hilton-Baird’s directors—Alex Hilton-Baird, Evette Orams, Graham Bird, and Ian Tramaseur—join FRP as partners. The additional 36 Hilton-Baird team members will also transition to FRP, enhancing the firm’s capabilities and service reach.

FRP Advisory Group plc expands its services with the acquisition of Hilton-Baird Group for £8.4 million, enhancing commercial finance and risk management capabilities.

For the financial year ending December 31, 2023, Hilton-Baird reported unaudited revenues of £4.9 million and an EBITDA of £1.3 million. The expected incremental contribution to FRP for the current fiscal year, ending April 30, 2025, is projected to be £5.2 million in revenue and £1.4 million in adjusted EBITDA.

Leadership Comments on the Merger

Geoff Rowley, CEO of FRP Advisory, expressed his enthusiasm about the acquisition: “I have worked with Alex and the team for over 15 years and know they share our values. Their reputation in the market is for hard work, honesty, and integrity in providing the highest level of service to clients. We are delighted to welcome new FRP Partners Alex, Evette, Graham, and Ian together with all other Hilton-Baird colleagues to FRP.”

Alex Hilton-Baird, founder of Hilton-Baird, also commented on the merger, highlighting the benefits of joining forces with FRP Advisory: “We are delighted to join FRP Advisory and are excited to embark on a shared journey, alongside like-minded professionals, who share our passion and drive in delivering the best possible outcomes for clients, colleagues, and shareholders.”

Regulatory and Shareholder Details

The acquisition includes the issuance of 2,310,557 new ordinary shares, with admission to trading expected on the AIM market of the London Stock Exchange by 8:00 a.m. on May 16, 2024. Following admission, FRP will have 253,687,592 ordinary shares in issue.

This merger represents FRP Advisory’s ninth acquisition since its admission to AIM in March 2020 and is a testament to its strategy of generating sustainable, profitable growth by combining organic development with strategic acquisitions.