Knights continues acquisition drive with £12.5m deal

Knights has announced the acquisition of West Midlands law firm Thursfields Legal for £12.5m.

The acquiring company has grown significantly in recent years and now employs over 1,400 people. This latest deal with Thursfields brings its total acquisitions since Knights’ 2018 IPO to 21.

The company’s strategy of “selective, considered acquisitions” is intended to double the size of the company in the medium term.

Established in 1878, Thursfields is an independent, full-service regional law firm with offices in Worcester, Kidderminster, Solihull and Birmingham.

With a strong private funds offering, 101 Fee-Gainers will strengthen Knights’ existing capabilities and presence in the West Midlands.

In its unaudited accounts for the year ended 30 April 2024, Thursfields reported revenues of £11.2m and a pre-tax profit margin of around 25%. Knights’ management says that once the business is fully integrated, Thursfields expects a pre-tax profit margin of around 30%.

Under the terms of the acquisition, Knights will acquire the business from its ten shareholders on a debt and cash free basis for a total consideration of approximately £12.5 million. This will commence with an initial cash consideration of £7.5 million, followed by a deferred cash consideration of £5 million, to be paid in three equal instalments on the first, second and third anniversaries following completion. The cash consideration will be funded from Knights’ existing bank facilities. Completion is expected to occur on 14 September.

David Beech, Chief Executive of Knights, said: “We are delighted to acquire Thursfields, a renowned full-service law firm which shares many cultural and operational similarities with Knights and which significantly strengthens our position as a leading legal and professional services firm in the Midlands.

“With our special focus on Private Wealth, we are further enhancing our expertise in an important and growing part of our business, which will support our future growth plans.

Michelle O’Hara, Managing Partner at Thursfields, commented: “Knights is a firm with a similar ethos to Thursfields, with a strong culture that cultivates collaboration across offices, which benefits client service.

“We look forward to working closely with the team and leveraging Knights’ scale, reputation and broad capabilities to unlock our future growth potential.”