Straumur to acquire European businesses from Landsbanki
Straumur-Burdaras Investment Bank (Straumur) and Landsbanki Islands (Landsbanki) have signed an agreement, whereby Straumur acquires, subject to the approval of relevant regulatory and competition authorities, the majority of Landsbanki’s overseas corporate finance and brokerage platforms for a consideration of €380m. Straumur acquires 100% of Landsbanki Securities (UK) Limited and Landsbanki Kepler, as well as Landsbanki’s 84% stake in Merrion Landsbanki.
The consideration for this acquisition will be settled by cash, a subordinated debt issue and a sale of loans. Following this transaction, the bank’s capital position continues to be extremely strong with a CAD ratio in excess of 20%.
These acquisitions complement and significantly broaden the depth and reach of Straumur’s already substantial European corporate finance and brokerage operations. The three firms being acquired employ some 680 people in 9 European countries and the United States, which transforms Straumur and its affiliates’ into an organisation employing 1.200 people in 18 countries.
Between them, the three firms have established relationships and a substantial client base in all the major financial centres in Europe. They share the emphasis which Straumur’s existing securities and corporate finance business places on providing local expertise and access to mid-cap companies. Taken together, the analysts of the enlarged group will cover over a thousand European companies.
The combined revenues of the three companies being acquired amounted to €232m in 2007 and the combined profit before tax was €30m.
Landsbanki Kepler - Continental Europe and US
# Staff of 381 in 7 countries: France, Germany, Italy, The Netherlands, Spain, Switzerland and the United States
# Leading European securities company with extensive local presence
# Team of 64 analysts covering approximately 500 European companies
# Between 2-5% estimated market share in secondary equity trading in respective markets
# Other business lines include corporate finance and asset management
Landsbanki Securities (UK) Limited - United Kingdom
# Staff of 196 in London and Edinburgh
# Joint operations of former Teather & Greenwood and Bridgewell
# Independent UK institutional and corporate stockbroker
# Research-driven capital markets operations focuses on the UK small and mid-cap segment
# Estimated market share of 3.7% in FTSE250 equities traded in the UK market
Merrion Landsbanki - Ireland
# Staff of 101 in Ireland
# One of Ireland’s leading stockbroking and corporate advisory firms
# Focused on private and institutional stockbroking, corporate finance, wealth mangement and funds management
# Research on all the main listed Irish companies
William Fall, CEO of Straumur:
“Straumur has been able to take advantage of this unique opportunity to become a substantially broader and more client-focused bank with a truly pan-European investment banking and securities platform. This is a significant step forward and is in line with our strategy to emphasize client-driven revenues and reduce reliance on long term lending and proprietary trading. These companies have strong local presence and reputations, which will reinforce our value proposition of local market knowledge and access.”
Straumur-Burdaras Investment Bank hf. offers a complete range of integrated financial services focusing on small and medium sized companies, institutional investors and individuals. The services provided include capital markets, corporate finance, debt finance, and asset management.
Headquartered in Reykjavík, Straumur is Iceland’s largest pure-play investment bank. The Bank had total assets of €6,201m as at the end of Q2 2008. Through organic growth and strategic acquisitions, the Bank has established operations in ten countries including the UK, Denmark, Sweden, Finland and the Czech Republic and now employs 520 people. Website: www.straumur.com.
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