TIDMJTC
RNS Number : 1441I
JTC PLC
10 December 2020
10 December 2020
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via the Regulatory Information
Service, this inside information is now considered to be in the
public domain.
JTC PLC
(the "Company" and together with its subsidiaries " JTC " or the
" Group " )
Acquisition of RBC cees Limited ("CEES")
A highly complementary acquisition adding scale and quality in
the corporate services business line
JTC, the award winning provider of fund, corporate and private
client services, is pleased to announce the acquisition of CEES.
Established in 2005, CEES is a market leading employee benefits
platform with an internationally diverse blue-chip corporate client
base. It offers a broad range of employee benefit plans and product
structures, is expert in the administration of a number of asset
classes and provides client support services as well as
administration.
CEES is being acquired from RBC Holdings (Channel Islands)
Limited, part of RBC Wealth Management. Around 180 employees,
including the CEES senior management team, will join JTC at
completion, becoming part of the Institutional Client Services
(ICS) Division. The transaction is subject to relevant regulatory
approvals and is expected to complete in early Q2 2021.
The high quality CEES client book consists of over 430 corporate
relationships and more than 890 plans, with assets under
administration of c.GBP11bn. Client tenure is often in excess of 20
years due to the nature of solutions provided. The acquisition is
complementary to JTC's existing corporate and trustee services and
significantly enhances the Group's employee benefits offering,
expanding a service line that has good organic growth potential due
to market trends that support the increasing adoption of employee
benefit programmes.
CEES employees serve a global client base from offices in
Jersey, Guernsey, London and Edinburgh and this will support
integration onto JTC's existing platform, with employees in Jersey,
Guernsey and London moving to existing JTC premises in those
jurisdictions and JTC taking over the Edinburgh office of CEES.
The acquisition is the latest in a series of successful bank
carve outs for the Group, with similar transactions having been
completed in 2015 (Kleinwort Benson's fund administration business)
and 2017 (Merrill Lynch's International Trust and Wealth
Structuring business).
The consideration for the acquisition comprises GBP20m in cash
funded from the Company's existing facilities. In the financial
year ended 31 October 2019, CEES achieved GBP23.5m in revenue and a
consolidated loss before tax of (GBP1.2m).
As part of the JTC group, it is expected that margins will
improve over time to reach the current Group guidance levels. The
acquisition will be immediately earnings enhancing and is expected
to deliver a return on invested capital ('ROIC') in excess of 10%
in year 1 and for this to grow significantly in the second and
third years of ownership.
The acquisition forms part of JTC's ongoing growth strategy,
which blends organic growth of the core business with disciplined
inorganic growth governed by clear acquisition criteria and
supported by a strong track record for thorough and successful
integration to JTC's global platform.
The Group continues to see further opportunities for both
organic and inorganic growth across its two Divisions, covering a
range of service lines and geographies, as it continues to expand
its global platform and participate in consolidation within the
sector.
Nigel Le Quesne, CEO of JTC, said:
"CEES is an established leader in the employee benefits market
with a blue-chip client base and excellent people. The fit with our
ICS Division offering is exceptional and I am delighted that its
core service offering is so closely aligned with JTC's strong
shared ownership culture, which has been one of our key
differentiators for over 22 years. We are pleased to welcome our
new colleagues and clients to the Group and look forward to working
with the excellent team at RBC to ensure a smooth transition of the
business. We can see that demand for employee ownership solutions
is growing globally and as well as achieving enhanced financial
performance over the medium term once integrated onto the JTC
platform, we see medium and long-term opportunities for good
organic growth."
Dave Thomas, CEO, RBC Europe, added:
"We are extremely proud of the CEES business that RBC Wealth
Management has built in the British Isles over the previous 15
years and are therefore pleased to see it transfer to the JTC
Group, which has employee shared ownership at the heart of its
culture. We believe that RBC and JTC share a number of important
values, including a commitment to client service excellence and
high levels of employee engagement. In addition, JTC has a track
record of integrating acquisitions of this type in a manner that
respects all stakeholders and in particular employees and clients.
We will be working closely with the JTC team via a transitional
services agreement to ensure that client service is transferred
seamlessly."
Ends.
Enquiries:
JTC PLC +44 (0) 1534 700 000
Nigel Le Quesne, Chief Executive Officer
Martin Fotheringham, Chief Financial Officer
David Vieira, Chief Communications Officer
Camarco +44 (0)20 3757 4985
Geoffrey Pelham-Lane
Georgia Edmonds
Monique Perks
About JTC
JTC is an award-winning provider of fund, corporate and private
client services. Founded in 1987, the company employs c.900 people
across its global office network and is trusted to administer
assets of c.US$130 billion.
JTC is committed to its shared ownership culture and philosophy,
with management and staff holding over 20% of the equity in the
firm, clearly aligning the interests of clients, employees and
other stakeholders.
www.jtcgroup.com
Important Notices
The person arranging release of this announcement on behalf of
JTC is David Vieira (Chief Communications Officer).
The release, publication or distribution of this announcement in
jurisdictions other than the United Kingdom may be restricted by
law and therefore any persons who are subject to the laws of any
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applicable requirements. This announcement has been prepared for
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information disclosed may not be the same as that which would have
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This announcement contains forward looking statements. No
forward-looking statement is a guarantee of future performance and
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December 10, 2020 02:00 ET (07:00 GMT)
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