A significant move in the legal market has occurred as a private equity firm, Horizon Capital, steps forward with a substantial £30 million investment. Their first acquisition under the newly established Adeptio Law Group is the Midlands-based FBC Manby Bowdler.
Horizon Capital, known for its ‘buy and build’ strategy, is aiming to create a leading national legal services group through regional law firm acquisitions. FBC Manby Bowdler, a well-established full-service law firm, becomes the cornerstone of this ambitious venture. Based in Wolverhampton, FBC operates across the West Midlands, Shropshire, and Worcestershire, employing over 200 staff.
In the recent financial year ending 31 March 2024, FBC reported a notable operating profit of £5.7 million on a turnover of £16.5 million, marking a 28% and 13% increase respectively from the previous year. These impressive results highlight the firm’s robust performance, making it an attractive acquisition for Adeptio Law Group.
Horizon Capital is allocating £30 million in equity capital and taking a majority stake in the group. This financial boost is expected to support FBC’s growth strategy, combining organic growth with strategic acquisitions beyond the West Midlands. Neil Lloyd, set to lead the Adeptio Law Group as chief executive, shared enthusiasm for the partnership with Horizon Capital, citing their proven track record in accelerating company growth.
Martin Smith joins as the group chairman, bringing his experience from previous roles in private equity-backed businesses. Additionally, HSBC is providing debt finance for this transaction, facilitating further acquisitions. Simon Hitchcock, Horizon’s managing partner, expressed excitement about investing in a market with strong growth drivers and consolidation opportunities.
FBC was chosen by Horizon after an extensive 24-month sector mapping, selected for its diverse service range and technological investments. Hitchcock anticipates working closely with Smith and Lloyd to propel the business into national prominence. Lloyd commented on FBC’s recent growth and expressed confidence that Horizon’s support will further enhance their success.
The entry of Horizon Capital into the legal market through the acquisition of FBC Manby Bowdler signifies a strategic expansion effort. With a focus on regional law firms, the new Adeptio Law Group aims to create a robust national presence. This move underscores the evolving dynamics in the legal services industry, driven by increasing compliance and technological advancements.
