Spicers looks global
New York-based firm Sterling Grace has taken control of one of New Zealand's biggest financial planning firms Spicers Portfolio Management and plans to help fund the company's international expansion.
Tuesday, June 29th 1999, 12:00AM
|
Buy this book now from the Bookstore |
 -->
If you invest in New Zealand shares this book is a must. Only $25 |
Sterling Grace originally paid $720,000 for a 24 per cent stake in Spicers in April 1997, and later topped up its holding to just under 50 per cent. It has now taken its holding to 65 per cent of the company. Chief executive Craig Dawson and director George Kerr own the majority of the remaining 45 per cent.
Dawson says Spicers is looking to expand overseas and has been investigating opportunities in Australia and the United Kingdom.
Originally the company looked at other potential partners but decided Sterling Grace was the best option.
Also the company has taken full ownership of the Spicers Auckland franchise and has bought back six other key franchises, including Wellington, Hamilton, Tauranga, Rotorua, Palmerston North and Christchurch.
Dawson says in early stages of the business cycle franchising is a good option for expansion, however as the business becomes more mature it is better to consolidate ownership.
He says the deal will mean more money is spent on growth and development in these regains than was likely if they remained under the control of franchises.
The move to buy back the franchises isn't a prelude to a sale of the business.
"We've had people come and talk to us (about buying the business), but we haven't actively pursued people and knocked their doors down."
Spicers currently manages a total of $1.15 billion. The bulk of that, $750 million, is Spicers' money, the balance is money it manages through a strategic alliance with firms such as New Zealand Financial Planning. Dawson says Spicers are on the verge of winning a new mandate.
| « Weekly briefs | Get your tax questions answered online » |
Special Offers
Commenting is closed
|
|
Printable version |
|
Email to a friend |
