Wealth manager and Financial Planner Brooks Macdonald has sold its £2.3bn FUM international arm to wealth manager Canaccord Genuity Wealth (International) Holdings Limited for £50.85m.

The deal will help fund growth and expansion plans at Brooks Maconald which has been striving to recover after being hit by net outflows last year and cutting 10% of staff.

Brooks Macdonald Group will sell its wholly owned subsidiary, Brooks Macdonald Asset Management (International) Limited and its subsidiaries, including Brooks Macdonald International (BMI), for a total consideration of up to £50.85m.

Canaccord will pay an initial sum of £28m in cash followed by a contingent consideration of up to £22.85m, payable in cash two years post-completion. The contingent consideration will depend on the revenue performance of the internaitonal business.

The deal is expected to be completed by March 2025 subject to regulatory approvals.

Brooks Macdonald says the sale concludes its previously announced strategic review of the group's international operations.

Brooks Macdonald says the sale proceeds will allow for “focused investment” in the group's core proposition and will enhance its ability to capitalise on the UK opportunities, including potential acquisitions.

As at 30 June, BMI had £2.3 billion of Funds under Management and in the financial year 2024 produced revenue of £19.9m and £3.3m of underlying profit before tax.

Brooks expects to include one off transition costs of up to £5m due to the separation of the businesses being sold and transitional costs.

Andrea Montague, CEO designate and chief financial officer of Brooks Macdonald, said: "We are pleased to announce the sale of BMI to Canaccord as their presence and understanding of the local markets will provide a strong foundation for the future growth and development of the business.

"I would like to thank all our BMI colleagues for their commitment to their clients and professionalism. We wish them all the best for the future."

David Esfandi, chief executive of Canaccord Genuity Wealth Management, said: "Brooks Macdonald International is a quality business and an excellent strategic fit for our international division.

"This is a mutually beneficial transaction that will cement Canaccord's position as a fully-fledged integrated wealth manager. Both firms are well-established across the Crown Dependencies, and BMI will also add significant Financial Planning expertise in our international business. Canaccord has a robust and scalable operating platform with a proven track record of successfully integrating businesses, and we anticipate a smooth process for BMI in 2025."

Brooks Macdonald Group also announced its latest annual results today, the last for current CEO Andrew Shepherd who is retiring and handing over to Andrea Montague from 1 October.

Results for the year ended June 2024 revealed a 7% rise in funds under management to £18bn and a 12.5% rise in pre-tax profit to £34.1m. The company has also announced a new chief financial officer in Katherine Jones who will take over from current CFO and CEO designate Andrea Montague.