Catella AB has, through Catella Property Fund Management AB (CPFM), signed a share purchase agreement to acquire a majority stake in the leading UK real estate investment and asset management company, APAM Ltd.
APAM has experienced fast growth over recent years and had revenues of approximately GBP7 million during the calendar year 2017. CPFM has agreed to acquire 75 per cent of the shares in APAM for a price corresponding to GBP18 million, on a debt and cash free basis. A non-refundable down-payment of the purchase price of GBP2.7 million was made at signing, while the remaining amount is to be paid in cash upon completion. Catella is not obliged to complete the transaction according to the agreement but it is expected to complete during second half of 2018, subject to necessary regulatory approval having been obtained from the financial supervisory authority in Luxembourg, Commission de Surveillance du Secteur Financier (CSSF).
In connection with the deal, CPFM and the two minority owners in APAM have entered into a call and put option agreement under which CPFM is being granted a call option to acquire the shares of the minority owners and the minority owners are being granted a put option to sell their shares to CPFM during the autumn 2023 at a price to be calculated through a pre-set formula depending on future profit development.
APAM is an independent real estate investment and asset manager operating exclusively in the UK market with a combination of skills to offer clients an ‘end to end’ approach to support their investment strategy. APAM has assets under management (AUM) of GBP1.4 billion and 41 employees.
Forsters LLP acted for Simon Cooke and William Powell.
Reed Smith has advised Catella on the acquisition with a team led by corporate partner James Wilkinson (picture), assisted by corporate associates Kathryn Bond, Tufayel Hussain; tax partner Caspar Fox and associate Harrison Stimson; real estate associate Stuart Wright; employment partner David Ashmore and associate Carl De Cicco; and pensions associate Micah Smith.
Involved fees earner: James Wilkinson – Reed Smith; Kathryn Bond – Reed Smith; Tufayel Hussain – Reed Smith; Caspar Fox – Reed Smith; Harrison Stimson – Reed Smith; Stuart Wright – Reed Smith; David Ashmore – Reed Smith; Carl De Cicco – Reed Smith; Micah Smith – Reed Smith;
Law Firms: Reed Smith;
Clients: Catella AB;