May 3 (Renewables Now) - UK asset management company Gresham House Plc (LON:GHE) has entered into an agreement to acquire FIM Services Ltd, an alternative investment fund manager that focuses on forestry and renewables.
Gresham House said on Wednesday that a wholly-owned unit will buy FIM Services for up to GBP 25 million (USD 34m/EUR 28m) on a cash-free, debt-free basis. The sum includes an initial consideration of GBP 21 million, comprising GBP 11.2 million in cash and GBP 9.8 million in loan notes, and earn-out of GBP 4 million. Gresham House intends to cover a portion of the cash needed for the transaction with the proceeds of a proposed GBP-15-million placing of new shares.
Founded in 1979, FIM specialises in sustainable UK real asset investments. In addition to forestry, the company manages 137 MW of renewable energy assets, including onshore wind farms and ground-mounted solar parks. As at end-2017, FIM had GBP 893 million of assets under management, excluding 10 MW of solar parks that were acquired in January 2018.
Upon completion of the purchase, Gresham House will have more than GBP 1.5 billion in assets under management across five specialist alternative investment strategies: forestry, new energy, UK housing and infrastructure, private assets and strategic public equity. The acquisition is also expected to accelerate the group’s profitability growth and increase the potential to pay dividends, it said.
(GBP 1.0 = USD 1.360/EUR 1.133)