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In the latest equity deal in Welsh business, Cardiff headquartered corporate advisory boutique Lexington Corporate Finance has been acquired in a £3.5m deal by FRP Advisory. The firm, founded in 2015 by Gary Partridge, has become the target of acquisition by the Alternative Investment Market listed FRP Advisory. This acquisition marks the first in Wales and the tenth in the UK for FRP since its listing in 2020.
The acquisition of Lexington Corporate Finance has been financed with £2.2m in cash (which includes £500,000 on technical completion) and £1.3m in shares. This move also sees Mr Partridge joining FRP as a partner, with the entire Lexington team of 14 becoming part of the group. Additionally, Lexington has a strong deal pipeline and recently opened a new office in Bath, targeting the south-west of England corporate advisory marketplace. Its consolidated unaudited revenues for the year ending in April 2024 were reported to be £2.3m, with an Ebitda of £600,000.
Looking ahead, it is anticipated that Lexington’s incremental contribution to FRP’s revenues will amount to £2.7m, with an adjusted Ebitda of £700,000 on an annual basis.
This acquisition aligns with FRP’s strategy of organic growth through acquisitions that meet its selective criteria. With the addition of Lexington to its network, FRP now boasts 28 offices. As part of the acquisition, Lexington will now trade as FRP Corporate Finance.
Gary Partridge, the founder of Lexington Corporate Finance, expressed his enthusiasm about joining FRP, stating, “We are delighted to be joining FRP and are excited at the opportunities that being part of the group presents for our team and our clients. We are all immensely proud of what we have achieved as a team at Lexington over the past nine years and being part of FRP will be a launch pad to enable us to offer a broader range of services to our clients. We are confident that by building upon our shared values of quality and professionalism with FRP, we will accelerate our growth.”
Geoff Rowley, chief executive of FRP Advisory, also shared his thoughts on the acquisition, mentioning, “Wales was a target region for FRP and this acquisition further strengthens our national corporate finance business. The team will go to market locally as FRP Corporate Finance. We are pleased to welcome Gary and the team to FRP; they share our values and I have no doubt will make a strong contribution, as we continue to grow.”
In 2023, FRP Advisory was involved in advising on more than £1.5bn worth of deals, raising over £500m in debt funding for its clients.
The acquisition of Lexington Corporate Finance by FRP Advisory has made an impact on the Welsh business landscape, fortifying FRP’s position in the corporate finance sector and providing a wider range of services for clients. As FRP continues to expand, the addition of the Lexington team promises to be a valuable asset for the company’s growth and development in the future.