Centrepoint Alliance Expands Queensland Footprint with $3 Million Client Book Acquisitions
Centrepoint Alliance has agreed to acquire client books from Cairns Wealth and Pinnacle Wealth, expanding its salaried advice business and Queensland presence. The $3 million deal is expected to add $0.6 million in EBIT and be earnings accretive in FY27, supported by a new $10 million NAB acquisition facility.
- Acquisition of Cairns Wealth and Pinnacle Wealth client books
- Approximately $3 million cash consideration
- Expected EBIT contribution of $0.60–0.65 million
- Strengthens partnership with Astute Financial Management
- New $10 million NAB acquisition facility secured
Strategic Expansion in Queensland
Centrepoint Alliance (ASX:CAF) is broadening its salaried advice footprint with the acquisition of client books and servicing advisers from Cairns Wealth and Pinnacle Wealth. These moves mark Centrepoint’s entry into all major regional centres across Queensland, reinforcing its national advice network and deepening ties with Astute Financial Management, a key referral partner.
Financial Impact and Deal Structure
The aggregated acquisitions involve three advisers and are valued at approximately $3 million in cash. Centrepoint anticipates the client books will generate around $1.5 million in revenue and contribute between $0.60 million and $0.65 million in EBIT. The implied multiple aligns with Centrepoint’s disciplined capital deployment framework, with the acquisitions expected to be earnings accretive in FY27.
Funding and Integration Plans
Backing this deal is a new $10 million acquisition facility approved by National Australia Bank, structured with a five-year term. This facility not only finances the current transactions but also underpins Centrepoint’s ongoing M&A ambitions. Operationally, Cairns Wealth advisers will remain in their Astute premises in Cairns, while Pinnacle Wealth advisers will integrate into Centrepoint’s Brisbane office, ensuring a scalable and low-complexity transition.
Reinforcing Adviser Retention and Earnings Quality
Centrepoint highlights that the acquisitions are supported by established recurring earnings and current adviser productivity. Retention structures are designed to maintain continuity of earnings, which is crucial for sustaining the company’s growth trajectory. CEO John Shuttleworth emphasised the strategic nature of these acquisitions, noting their alignment with Centrepoint’s capital discipline and growth strategy through acquisitions and adviser recruitment.
Completion Timeline and Outlook
The transactions are expected to complete by 1 July 2026, subject to regulatory approvals and operational transitions, including the advisers joining Centrepoint. This expansion complements Centrepoint’s recent growth momentum, building on its position as a leading advice provider while reinforcing its Queensland presence and partnership with Astute.
Bottom Line?
Centrepoint’s latest acquisitions add scale and earnings quality in Queensland, setting the stage for further growth funded by its new NAB facility.
Questions in the middle?
- How effectively will Centrepoint retain advisers post-acquisition to sustain recurring earnings?
- Will the new NAB facility enable Centrepoint to accelerate its M&A strategy beyond these deals?
- How will integration of Cairns and Pinnacle advisers influence Centrepoint’s operational efficiency?
