AIB Group is to acquire Goodbody in a deal worth €138m, subject to CCPC approval. Under the deal terms, AIB will acquire 100% of Goodbody’s shares for an enterprise value of c.€82m, along with c.€56m excess cash on the balance sheet.

Goodbody provides wealth management, corporate finance and capital markets services. It manages assets of c.€8bn and employs 300 people in offices across Ireland and the UK.

Goodbody’s three core business divisions are wealth management, asset management and investment banking for private and corporate clients. Under the terms of the acquisition, a small number of AIB staff from its corporate institutional and business banking team are expected to move across to Goodbody over time.

Goodbody recorded revenue of c.€71m in 2020. The business is majority owned by Kerry financial services company Fexco. It was previously owned by AIB, who sold it in 2011 as part of its recession-related restructuring plan.

AIB said that the acquisition is part of a wider strategy for the bank that also involves expanding in the life and pensions segments.

In Association with

Colin Hunt (pictured), CEO of AIB, described the Goodbody acquisition as a landmark deal for the bank. “While the group will optimise synergies to expand customer offerings for both existing AIB and Goodbody private and corporate clients, Goodbody will remain as a separately regulated entity with its own brand and board,” Hunt continued.

The bank said that it is continuing to adhere to the government’s pay restrictions, with separate remuneration structures in place for Goodbody.

AIB also announced the launch of its new €50 million SME equity fund, with a focus on backing businesses that can help accelerate Ireland’s transition towards a low-carbon economy.

The bank explained that the aim of the new fund is to provide equity to support the growth of Irish SMEs; to stimulate job creation in the economy; and to ensure a greener future for Ireland by backing those businesses that are building it today.