Justin Clark of Close Brothers Corporate Finance reports that Daiwa Securities SMBC Europe Limited (Daiwa SMBC Europe), the European subsidiary of leading Japanese investment bank Daiwa Securities SMBC Co. Ltd. (Daiwa SMBC), is acquiring Close Brothers Corporate Finance Holdings Limited. (Close Brothers Corporate Finance) from Close Brothers Group plc for a cash consideration of £75 million. The acquisition is part of Daiwa SMBC’s strategy to build a global independent corporate advisory business.  The acquisition is subject to regulatory approval.

Close Brothers Corporate Finance Holdings Ltd (www.cbcf.com) offers independent corporate finance advice in: Mergers and Acquisitions, Restructuring, Debt Advisory, Financial Sponsors Coverage, Pensions Advisory and IPO Advisory. Headquartered in London, it employs over 200 professionals across offices in Manchester, Paris, Lyon, Madrid, Barcelona, Frankfurt and Zurich.

Close Brothers Corporate Finance, one of Europe’s leading advisers with operations in the UK, France, Spain, Germany and Switzerland, will be a stand alone business working in alliance with Daiwa SMBC’s other international corporate finance operations and will continue to provide independent corporate finance advice. Close Brothers Corporate Finance will continue to trade under its existing name for up to twelve months. 

Close Brothers Corporate Finance will bring scale and authority to Daiwa SMBC’s international corporate finance advisory business, providing it with access and insight into European markets. The acquisition is in line with Daiwa SMBC Europe’s commitment to grow its presence across its four divisions (Investment Banking, Equity, Fixed Income and Derivatives) and to provide clients with market leading services.

Close Brothers Corporate Finance will benefit from access to a global network of relationships in Daiwa SMBC’s existing markets. This includes Japan, Asia (China, Hong Kong, Singapore, India and other countries), Russia, Bahrain, Dubai and other Gulf territories as well as into the US through Daiwa SMBC’s alliance partner, Sagent Advisors. Close Brothers Corporate Finance’s extensive presence across Europe, in conjunction with Daiwa SMBC’s established operations in Japan, Asia and the US, will facilitate cross-border deals.

Commenting on the acquisition, Mr. Eishu Kosuge, Chairman and Chief Executive Officer of Daiwa SMBC Europe, said: 

“This is an important acquisition for the firm and a significant day in our forty-five year European history. Acquiring Close Brothers Corporate Finance provides the firm with a stand alone European corporate finance advisory business thereby achieving one of our current strategic goals. Close Brothers Corporate Finance will also increase the firm’s locally originated European business and revenues as well as serving to diversify our earning streams which, to date, have largely been commission driven. I very much look forward to working with our new colleagues.”

Stephen Aulsebrook will remain Chief Executive of Close Brothers Corporate Finance, reporting to Mr. Ikuo Mori who becomes Chairman of Close Brothers Corporate Finance on completion of the deal. Mr. Mori was previously Senior Managing Director and head of International Operations at Daiwa SMBC and Director of Daiwa Securities Group Inc.

Mr. Mori, Chairman Designate of Close Brothers Corporate Finance, commented:

“I am delighted to accept the position of Chairman and look forward to working closely with Stephen. He and his team have built a successful and highly regarded European corporate finance advisory house and this acquisition positions us well to benefit from the increased cross border deal flow we expect to see between Europe, Japan and Asia.”

Stephen Aulsebrook, Chief Executive of Close Brothers Corporate Finance, said:

“Close Brothers Corporate Finance is experiencing a period of significant growth across Europe as a result of our proven expertise in handling complex situations in debt restructuring and M&A.  I am delighted that Daiwa SMBC Europe recognises the value of Close Brothers Corporate Finance and has clear plans to invest in the continued expansion of the business across Europe, as well as maintaining our independent advisory business model.”

For more information please contact:

Close Brothers Corporate Finance – Justin Clark  +44(0) 20 7655 3784

Daiwa Securities SMBC Europe Limited – Paul Lyon  +44(0) 20 7597 8109 

Citigate Dewe Rogerson
Grant Ringshaw     +44 (0) 20 7282 2851
Alistair Kellie         +44 (0) 20 7282 2850
Georgiana Varey   +44 (0) 20 7282 2806

Daiwa Securities SMBC Europe Limited (www.Daiwasmbc.co.uk) is the European subsidiary of Daiwa Securities SMBC Co. Ltd. The firm can trace its origins back to 1964 when Daiwa Securities opened its first representative office in London. It has branch offices in Paris, Frankfurt, Geneva, Milan, Bahrain and Dubai and a representative office in Moscow, operating across fours divisions – Equity, Fixed Income, Investment Banking and Derivatives.

Daiwa Securities SMBC Co. Ltd. is the Tokyo-based parent of Daiwa Securities SMBC Europe Limited. It provides brokerage and investment banking services, including M&A advisory services, targeting domestic and overseas institutions for their optimum asset management. It was formed in 1999 through a strategic joint venture between Daiwa Securities Group Inc. (60% owned) and Sumitomo Mitsui Financial Group (SMFG), Inc. (40% owned). The major strength of the firm is this unique business model, being the only dedicated wholesale securities company in Japan formed through a joint venture between a major securities company and a megabank. Daiwa Securities SMBC Co. Ltd. is able to develop its business by drawing on the broad customer bases of both Daiwa Securities Group and SMFG.

Sagent Advisors Inc. (www.sagentadvisors.com) is an independent, privately owned investment bank that provides its clients with financial advisory services and strategic alternative capital markets solutions. The firm serves a broad client base through its offices in New York, Chicago, Charlotte and San Francisco.  Sagent Advisors has no lending, trading, research or other structural conflicts – acting only as a trusted advisor to its clients.  Daiwa Securities Group Inc. holds approximately a 20% equity stake in the firm.