Scottish-founded AAB unveils deal with Kreston Reeves to create £200m-plus group
“This is a major milestone for AAB and a clear demonstration of our ambition to become the leading professional services firm serving the mid-market” – Emma Lancaster, CEO
AAB, the acquisitive Scottish-founded accounting and business services group, has sealed its largest deal to date in a “transformative” move that creates a business with revenues north of £200 million.
Bosses said the tie-up with Kreston Reeves, supported by Goldman Sachs Alternatives, will significantly enhance AAB’s “scale, geographic reach and service capability”, as it positions itself as one of the UK’s largest mid-market advisory firms.
The combined business will employ more than 1,800 people across 23 locations in the UK and Ireland.
Kreston Reeves is an accountancy and business advisory firm focused on the south east of England with revenues of more than £50m revenue, employing some 550 people across seven offices in London, Kent and Sussex.
The deal is the largest AAB - formerly Aberdeen-headquartered Anderson Anderson & Brown - has completed to date and marks the 18th since the business initially secured private equity investment in 2021. It is also the firm’s third deal since its investment agreement with Goldman Sachs Alternatives was completed just two months ago.
Emma Lancaster, chief executive at AAB, said: “This is a major milestone for AAB and a clear demonstration of our ambition to become the leading professional services firm serving the mid-market.
“Growing the group beyond £200m revenue is not about growth for growth’s sake - it’s about building a resilient, sustainable business that delivers long-term value for our clients, our people and our communities.
“This is our third deal since our investment deal with Goldman Sachs Alternatives was completed two months ago, and we are hugely excited about the future opportunities ahead as we continue to scale by combining businesses who share our dedication to putting clients at the heart of everything we do,” she added.
Richard Spofforth, managing partner at Kreston Reeves, said: “This is a significant milestone for our business, people and clients. Building on the strengths we have at Kreston Reeves, it will create new opportunities for our talented colleagues.
“For our clients, it will provide them with access to broader specialist expertise together with greater geographic reach. Most importantly, AAB shares the same values as Kreston Reeves, giving us a combined platform for sustainable long-term growth.”
AAB’s strategic expansion plan is set to continue with further investment opportunities already under discussion to strengthen its regional and national footprint. The new partnership is subject to regulatory approval and is expected to close this spring.
Jose Barreto, partner, and Mihir Lal, managing director, private equity at Goldman Sachs Alternatives, said: “We are very excited about the strategic combination of AAB and Kreston Reeves. This partnership accelerates our vision for a national presence across the UK and Ireland, delivering essential scale in the south-east of England.
“The deep cultural alignment between AAB and Kreston Reeves will strengthen the collective offering for both customers and employees.”
AAB provides audit and accounting, tax, payroll and HR, outsourcing and advisory services globally. It has offices in the UK, Ireland and the US. Prior to this latest deal it had some 1,250 staff, including more than 90 partners and turnover in excess of £145m.
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