Slater & Gordon purchases litigation law firm in Queensland
Publicly listed law firm Slater & Gordon announced on Monday that it is acquiring Trilby Misso Lawyers Ltd for $57 million, declaring that the purchase should bolster the firm's strategic goal of leading the country's personal injuries litigation market.
The law firm said that part of the purchase would be funded by a $40 million capital raising, plus some cash holdings and deferred consideration, while projecting that company earnings per share should shoot up by nine percent in 2010/11.
Slater & Gordon said that company shares would be offered at $1.40 per share to gather the targeted capital of $40 million with a $38 million share placement to sophisticated and professional investors.
An additional $2 million share purchase plan would also be offered to qualified shareholders, which should fetch up to $15,000 per new shares.
Slater & Gordon managing director Andrew Grech said that the acquisition gave the company an expansion opportunity that would have taken years and heavy investment to attain, plus the fact that "it also gives us a fantastic revenue base and highly skilled and experienced practitioners."
Trilby Misso has been a leading litigation firm that deals with personal injuries, with up to 93 percent of its recent cases comprising motor vehicle accident claims and workers' compensation.
According to Slater & Gordon, which also earlier purchased Kenyons Lawyers in Melbourne and Adams Leyland Lawyers in NSW, the Queensland-based Trilby Misso is slated to operate as a standalone business under the same name once the takeover has been finalised.
As of 1021 AEST, Slater & Gordon stocks were trading at $1.54, improving by four cents or 2.67 percent on the news of the purchase.