Jupiter is to acquire CCLA for £100m in cash, funded from the balance sheet. The deal is expected to be materially earnings accretive, with considerable cost synergies to be achieved in due course. The consideration equates to ~10x pre-synergy earnings falling to ~3x once synergies are achieved. We think that this is a good use of cash, although it does not appear to change the growth dynamics in the business. We still see a share that is fully valued yet redemptions persist. We note strong performance fees for FY25e which will translate into a special distribution once crystallised. We remain at HOLD.
