Harwood Wealth Management, a growing  Financial Planning and discretionary wealth management business, is to buy Castleton Financial Planning for approximately £1.6m.

Harwood says it has exchanged contracts to purchase the business of Castleton Financial Planning, based in Somerset.

It is Harwood’s second acquisition during the company's current financial year.

The purchase price is expected to be approximately £1.6m, payable 50% on completion, which is expected to be in April 2019. There will then be a further two instalments of 25% which are due to be paid on the first and second anniversaries of completion, contingent upon results.

Harwood has acquired a number of Financial Planning firms in recent years. Last year it bought two firms in one week, Fund Management Limited of Ascot for £1.13 million and retirement solutions adviser Plan65, also based in Ascot, for £1.156m.

Castleton is based in Castle Cary in Somerset. Directors of the firm include Chartered Financial Planning John Broxup.

Peter Mann, chairman of Harwood Wealth Management Group, said: "The acquisition of Castleton is our second this financial year, and in line with our strategy has a strong cultural fit to the Group.

"It is very pleasing to have started 2019 with the purchase of two quality businesses, and we continue to see a healthy pipeline of opportunities available to us."