Slater and Gordon acquires Kenyons

Listed lawyers Slater and Gordon Ltd have acquired Melbourne suburban lawyers, Kenyons, for a mixture of cash and $800,000 in the company's shares.

Slater and Gordon said on Thursday that part of the cash component of the purchase price would be deferred to September 2010 and September 2011, subject to the business meeting performance criteria.

Kenyons, established in 1980, operates from two offices in Melbourne's northern suburbs. The practice generates more than $5 million per year in fees with around half from motor vehicle injury and workers compensation matters, Slater and Gordon said in a statement.

"We've had a lot of respect for Kenyons as a strong competitor over many years," Slater and Gordon managing director Andrew Grech said.

"There will be some synergies resulting from combining their personal injury practices with our own," he said.

Slater and Gordon says it also plans to acquire a NSW regional practice, Adams Leyland, with around another $4 million in annual fee income.

The deal is subject to due diligence.