On Monday, NatWest Group (NYSE:NWG) disclosed the acquisition of Evelyn Partners for an enterprise value of 2.7 billion pounds (around $3.7 billion).
This strategic move aims to strengthen NatWest’s position in the wealth management sector, enhancing its service offerings and market reach.
- NWG stock is slumping fast. See the chart here.
The transaction is expected to create the U.K.’s leading Private Banking and Wealth Management business, enhancing NatWest Group’s savings and investment services for its 20 million customers.
Notably, Evelyn Partners oversees 69 billion pounds in Assets Under Management and Administration (AUMA) and has achieved over 7% CAGR in AUMA and generated 179 million pounds EBITDA in 2025, implying a 2025 EV/EBITDA multiple of 9.7x including target run-rate cost synergies.
By integrating Evelyn Partners, NatWest aims to deliver enhanced financial solutions to its clients.
The deal is subject to customary regulatory approvals and is expected to close in summer 2026.
Integration Creates Significant Synergies
The acquisition of Evelyn Partners is part of NatWest’s broader strategy to enhance its service offerings and market position.
The transaction combines Evelyn Partners with NatWest Group’s PBWM business, led by Emma Crystal, creating a total AUMA of 127 billion pounds and total customer assets and liabilities of 188 billion pounds.
NatWest expects the merger to generate substantial shareholder value, including estimated annual run-rate cost synergies of 100 million pounds (around 10% of combined PBWM costs) with implementation costs of approximately 150 million pounds.
The transaction is expected to be accretive to NatWest’s growth and Return on Tangible Equity in its first year, delivering returns greater than a share buyback. It will be funded from existing resources and is anticipated to reduce NatWest’s CET1 ratio by around 130 basis points.
Buyback & Shareholders’ Appreciation
In addition to the acquisition, NatWest announced a 750 million pounds share buyback program.
Following this, the next buyback is expected with the first half of 2027 results.
The ordinary dividend payout ratio of roughly 50% of attributable profits remains unchanged.
NWG plans to release its quarterly results on February 13.
NWG Price Action: NatWest Group shares were down 5.99% at $17.02 at the time of publication on Monday, according to Benzinga Pro data.
Photo by Alex Yeung via Shutterstock
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