Cardiff’s Lexington Corporate Finance has been acquired by FRP Advisory for £3.5 million.
This strategic acquisition advances FRP’s presence in the Welsh market, marking its tenth UK transaction. With a focus on organic growth, the deal underscores the potential of the firm’s selective acquisition strategy.
Acquisition Overview
FRP Advisory, listed on the Alternative Investment Market, has recently acquired Cardiff-based Lexington Corporate Finance for £3.5 million. This acquisition marks FRP’s first entry into the Welsh market and its tenth UK acquisition since its public listing in 2020. The deal was structured with a combination of £2.2 million in cash, including £500,000 upon completion, and £1.3 million in shares.
Strategic Significance
The acquisition aligns with FRP’s strategy to achieve organic growth through selective acquisitions. Lexington, founded in 2015 by Gary Partridge, offers a robust deal pipeline and now operates as FRP Corporate Finance. With strong revenue and growth potential, Lexington recorded unaudited revenues of £2.3 million and an EBITDA of £600,000 for the fiscal year ending in April 2024. The firm anticipates contributing to annual revenues of £2.7 million and an adjusted EBITDA of £700,000 for FRP.
Integration and Leadership
Gary Partridge, Lexington’s founder, will join FRP as a partner, bringing along a team of 14 professionals. This integration is expected to fortify FRP’s presence in Wales, enhancing its service offerings. Lexington’s new office in Bath, which focuses on the South West of England, will further bolster its strategic objectives. Mr Partridge is optimistic about the merger’s potential for expanding service capabilities and market reach.
Client and Market Impact
The acquisition is anticipated to broaden the scope of services available to Lexington’s clients, leveraging FRP’s extensive resources. Geoff Rowley, Chief Executive of FRP, expressed confidence that the new team will make significant contributions to FRP’s growth and client service excellence. The emphasis remains on maintaining quality and professionalism, key shared values between the two firms.
Financial Performance and Expectations
FRP Advisory has a proven track record in corporate finance, having advised on deals exceeding £1.5 billion in 2023 and raised over £500 million in debt funding for clients. The acquisition of Lexington is expected to augment these numbers by adding expertise and a fresh client base. The merger will also expand FRP’s network to 28 offices nationwide, solidifying its repositioning as a leader in the sector.
Leadership Statements
“Joining FRP provides us with a launchpad to offer a broader range of services to our clients,” said Gary Partridge. He emphasized pride in Lexington’s accomplishments and the potential for enhanced growth through shared values with FRP. Geoff Rowley stated, “This acquisition strengthens our national corporate finance business, particularly in the Welsh region, reinforcing our commitment to growth and value creation.”
Future Prospects
Looking ahead, both FRP and Lexington are set to benefit from the synergies of their combined expertise and market presence. With shared visions and a focus on client-centric services, the future appears promising for both entities.
The acquisition of Lexington Corporate Finance by FRP Advisory is expected to enhance service delivery and market reach.
Both firms are poised for growth, leveraging shared values and expertise to deliver comprehensive corporate finance solutions across the UK.
