Caledonia seals £100m deal for 7IM

The Caledonia investment trust has agreed to acquire a 94% stake in Seven Investment Management in a deal valuing the firm at £100m.

The deal, which is subject to regulatory approval, follows speculation earlier this year that the company was seeking a buyer and reports that Caledonia was the front runner. Investment trust Caledonia will invest £77m in cash to acquire 94% of the company from its current owners Allied Zurich and Aegon UK. Seven IM's management will subscribe £5m for the remaining equity. Bank debt of £25m, to be underwritten by Caledonia, will account for the remaining purchase costs. The value of the business is £40m higher than the price estimated by some analysts analysts at the time the firm ...