Andrew Möller: Picture: STEPHEN WILLIAMS
Andrew Möller: Picture: STEPHEN WILLIAMS

WEALTH manager Citadel has acquired 100% of financial planning and advisory business Consolidated Financial Planning in a deal believed to be worth more than R100m.

The transaction enhances Citadel’s assets under management and advice by about R6bn to R42bn. Before this transaction, Citadel had assets under management of about R38bn.

Citadel CEO Andrew Möller said the deal also "brought a very strong human capital and skills set" to Citadel. "I am very happy and satisfied that the process went through. It was a fair value exchange. The process resulted in a fair and very equitable process for both parties," he said.

Consolidated is about 16 years old and an independent, fee-based financial planning and advisory practice with offices in Johannesburg, Tshwane, the Western Cape, the Eastern Cape and KwaZulu-Natal.

Citadel acquired full ownership of Consolidated from Betty & Dickson Holdings, PPS and management.

Mr Möller said with full ownership for Citadel, the plan was to launch a single brand strategy, meaning that Consolidated Financial Planning would be rebranded.

"This (deal) is going to keep us busy for the next 12-18 months. Our focus will be for us to make the transaction work and to integrate the business," Mr Möller said when asked if Citadel would conduct another deal soon.

Citadel, a flagship wealth-management business within the JSE-listed financial services group Peregrine, has been looking for bolt-on acquisitions to bolster its business. "We are delighted with this transaction that we have just done. It is in line with the growth strategy that we have been embarking on," Mr Möller said.

He said Citadel had moved away from just an organic growth strategy in the past 24 to 36 months and wanted to grow through acquisitions.

In 2014, Citadel bought 100% of retirement adviser, The Wealth Corporation.

In November 2013, Citadel’s parent, Peregrine, took control of Cannon Asset Managers.