Mattioli Woods has acquired MC Trustees for £2.2 million.

The specialist wealth management and employee benefits business has bought the entire issued share capital of Old Station Road Holdings Limited and its subsidiaries.

MC Trustees, founded in 1986, provides pension administration and trustee services to over 1,500 Sipp and SSAS clients with over £400 million of assets under administration.

Based in Hampton-in-Arden in the West Midlands and employing 26 staff, the business specialises in the provision of personal service and strong technical advice.

MC Trustees' experienced management team will be retained by Mattioli Woods following the acquisition.

There is also an agreement in principle to acquire MC Malta, which operates QROPS, for up to £0.6 million.

Ian Mattioli, chief executive of Mattioli Woods, said: "This acquisition is another important step forward for Mattioli Woods, as we continue to expand our operations. MC Trustees is a great fit culturally and strategically, serving a similar client base to our existing business, while complementing our current operations in the East Midlands".

"The MC Trustees team has a proven ability to win high-quality new business and the transaction gives us an exciting new distribution channel for Mattioli Woods' services. I believe this will strengthen our position in a market that is continuing to consolidate."

Martin Cadman, MC Trustees' managing director, said: "We are excited to become part of the Mattioli Woods group and believe this transaction benefits our clients, employees and partners."

Today’s deal comprises an initial £1.2 million, including £0.95 million in cash, plus 38,081 new ordinary shares of 1 pence each and deferred consideration of up to £1million in cash in the two years following completion, subject to certain financial targets being met.

In the year ended 31 December 2015, MC Trustees generated a profit before taxation of £0.4 million on revenues of £1.6 million. At 31 December 2015 MC Trustees' net assets were £0.3 million.