Kleinwort buys Close Offshore

Kleinwort Benson has acquired Close Brothers Offshore Group in a £29.1 million cash deal which includes Close's private banking, fund administration, fund management, trust and asset management businesses across Guernsey, Jersey and the Isle of Man as well as its wholly-owned shared service centre in Cape Town.

The acquisition increases the size of Kleinwort's private wealth assets under management to approximately 7 billion and its offshore operations into the Isle of Man and South Africa.

The transaction, which has the full support of Kleinwort's shareholder, RHJ International, is being made by Kleinwort Benson Channel Islands Holdings and is subject to approval by the relevant regulatory bodies. The transaction is expected to be completed by the end of Close's financial year on 31 July.

Kleinwort's chief executive Sally Tennant said: "The acquisition is in keeping with Kleinwort Benson's strategy of developing its on and offshore business."

"It will add further scale and strength to our banking and fiduciary businesses, enhancing our offering with the addition of new distribution channels."

She added: "The combined business will have enormous strength and depth in terms of its people, services and systems."

Close Brothers Offshore Group currently employs 350 across the four jurisdictions, with Kleinwort Benson employing 358 in the Channel Islands and 271 in the UK.