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Slater&Gordon builds empire with $35m Keddies purchase

LISTED law company Slater & Gordon announced plans to control half the personal injury lawsuit market after snapping up New South Wales firm Keddies Lawyers yesterday.
By · 27 Oct 2010
By ·
27 Oct 2010
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LISTED law company Slater & Gordon announced plans to control half the personal injury lawsuit market after snapping up New South Wales firm Keddies Lawyers yesterday.

The $35 million acquisition of Keddies follows the $57 million purchase of Queensland firm Trilby Misso in June, and the company is still looking for targets.

"There are still opportunities in South Australia, in Western Australia and in Victoria," chief executive Andrew Grech said.

Yesterday's acquisition will be funded from cash and debt, and the company has extended its loan facility with Westpac to $95 million.

The purchase will take Slater & Gordon's gearing to just over 30 per cent, which is at the low end of its target range, Mr Grech said.

"So we've still got headroom. We'll only spend if there is sufficient return on the capital."

With Keddies, Slater & Gordon controls more than 20 per cent of the personal injury market. "Other than the competition restrictions, I don't think there is any natural limit to the market up to about 40 or 50 per cent," Mr Grech said.

"In relation to most other listed companies, I think it's fair to say we are well in advance. We've still got an enormous growth trajectory," he told a shareholders' meeting.

He said potential growth areas for the firm were family law, conveyancing, wills and estate litigation, where the company controls less than 1 per cent of the market.

Slater & Gordon shares rose 5.5?, or 3.1 per cent, to close at $1.82.

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