by Jenny Surane and Aaron Kirchfeld
Evercore Inc. agreed to acquire Robey Warshaw, one of London’s top boutique advisory firms, as it seeks to capture more market share ahead of a potential boom in deals across Europe.
The US firm will pay $196 million for its smaller rival, it said in a statement on Wednesday. The deal is expected to close in the fourth quarter and will be accretive to Evercore’s profits in the combined company’s first full year.
While it’s the highest-ranking boutique investment bank on the league tables globally, Evercore has a relatively smaller presence in Europe. It’s captured about 3.3% of the market share from the region so far this year, placing it at No. 13, according to data compiled by Bloomberg.
“We are taking another big step forward by combining with Robey Warshaw,” Roger Altman, Evercore’s founder and senior chairman, said in the statement. “This will elevate the firm further in the UK, across Europe and globally.”
With Robey Warshaw, Evercore is getting one of the few specialist advisory shops run by seasoned bankers with long-standing links to blue-chip clients. The firm was founded in 2013 by former Morgan Stanley bankers Simon Robey and Philip Apostolides, along with ex-UBS Group AG dealmaker Simon Warshaw.
The firm has five partners, including former UK Chancellor of the Exchequer George Osborne, and Chetan Singh, a rare hire who came on board as a partner from JPMorgan Chase & Co. last year.
Robey Warshaw employs roughly 20 staff at its offices on Grosvenor Square in London’s upmarket Mayfair district. Its 18th century building was once a home to John Adams, the second US president.
The company has worked on some of the UK’s highest profile mandates, including Banco Santander SA’s purchase of Banco Sabadell SA’s UK unit TSB, a deal that was announced this month. HSBC Holdings Plc tapped Robey Warshaw when it was fighting calls for a breakup from its biggest shareholder. The company also advised a consortium led by former Guggenheim Partners President Todd Boehly on its bid for Chelsea Football Club, Bloomberg News previously reported.
The company has also advised on UK megadeals including BG Group Plc’s sale to Royal Dutch Shell Plc, Comcast Corp.’s winning bid for UK broadcaster Sky Plc and London Stock Exchange Group Plc’s purchase of Refinitiv.
Evercore said the transaction is payable in two tranches — the first payment will come in its stock at closing and the second will take place a year later in either stock or cash. Evercore said it could make additional payments if the transaction achieves certain performance criteria over a multiyear period.
With the deal, Evercore will have a greater foothold in a region that’s expected to see a pick up in merger and acquisition activity as the European Central Bank steadily cut rates.
There’s been a flurry of deals announced already this year, including Prosus NV’s announcement that it will buy food delivery group Just Eat Takeaway.com NV for €4.1 billion ($4.7 billion) and National Grid Plc’s plans to sell a renewables business to Brookfield Asset Management for $1.7 billion. In Italy, Banca Monte dei Paschi di Siena SpA has made a hostile takeover offer for Mediobanca SpA that values the target at €13.5 billion.
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