MFS has paid $NZ52.5 million for Northplan, one of New Zealand’s largest financial advisory firms.
Northplan provides professional and independent investment, estate planning and financial advice to more than 3,400 clients.
Operating out of nine offices in the North Island of NZ, Northplan’s clients are typically high net worth individuals who have sold a property, farm or business, received an inheritance or are high income earners.
Northplan was established in 1989 by Kelvin Syms and under his direction it has grown to become one of NZ’s largest financial advisory firms. Syms will remain actively involved in the business and will be appointed as the managing director of MFS New Zealand.
Northplan directly has funds under management and under advice of circa $NZ670million. The company also provides back office and portfolio services to a number of financial advisory groups across NZ.
Northplan holds strategic stakes in these advisory groups, which have a combined funds under management and under advice of more than $NZ330million and advise in excess of 1500 clients.
MFS will pay $NZ42.5million in cash with the balance to be settled through the issue of MFS Limited shares to Syms.
The acquisition follows MFS’ announcement in June 2006 that it had agreed to sell 60% of its New Zealand operations to a group of financial investors in both Australia and New Zealand, including a subsidiary of the Babcock & Brown Group.
MFS’ NZ chief executive Jason Maywald said Northplan would ultimately be merged with MFS’ existing NZ business.
Completion of the acquisition is planned to occur by January 31, 2007.
By Adam Parsons
