AIB confirms Goodbody deal, launches €50m green fund

2 Mar 2021

Image: © piter2121/Stock.adobe.com

The pillar bank has confirmed that it is acquiring the stockbroker for €138m and is launching a fund to back green-focused SMEs.

AIB has confirmed it is acquiring Goodbody Stockbrokers and will establish a €50m green equity fund to invest in SMEs.

The long-speculated deal has seen AIB acquire 100pc of Goodbody from existing shareholders for €138m. This reflects an €82m enterprise value and around €56m excess cash on the balance sheet.

Goodbody, a provider of wealth management, corporate finance and capital markets services, has €8bn in assets under management and has 300 employees in offices in Ireland and the UK. Kerry-based financial services company Fexco held a 51pc stake in the firm, with the remainder held by management and staff.

AIB chief executive Colin Hunt said the acquisition of Goodbody is a “landmark deal” for the bank as it prepares to expand services in Ireland.

“The acquisition of Goodbody will greatly increase the group’s capacity to broaden its services to customers, while also enhancing the bank’s growth opportunities,” Hunt said.

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Goodbody will continue to operate as a separately regulated entity and brand with its own board. The deal is subject to approval from the Central Bank of Ireland and the Competition and Consumer Protection Commission.

“With AIB, Goodbody is aligning with the market leader and could not be better positioned to compete in the financial services sector over time,” Goodbody managing director Roy Barrett said.

“This is now the beginning of an exciting new phase of the company’s development as this partnership has the potential to offer our business, our clients and our staff many opportunities for growth as we start the next chapter of Goodbody’s history.”

Hunt added that the deal will serve AIB’s plan to transform the bank, which was announced at the end of last year.

As part of those transformation efforts, AIB has also announced a €50m SME green equity fund to invest in companies that are helping Ireland to transition to a low-carbon economy.

The new pot of cash will make equity investments in these SMEs to ensure job creation and a greener, more sustainable economy.

Jonathan Keane is a freelance business and technology journalist based in Dublin

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