City law firm Addleshaw Goddard has sold its volume conveyancing arm, Enact, to its existing management team for an undisclosed sum.

The management buy-out team is headed by Richard Dinning, who becomes executive chairman of Enact and leaves the firm's partnership.

Addleshaw Goddard, which was advised by KPMG, will continue to have a minority equity position in the business and representation on the board of the Leeds-based company, which employs nearly 300 staff.

Montagu Capital financed the equity on the deal while the Bank of Scotland provided debt support.

Launched by Addleshaw Booth & Co in April 2000, Enact's clients include One Account, Direct Line, Barclays, Woolwich, Northern Rock and the Co-operative Bank.

The firm has decided to spin it off because bulk conveyancing does not sit well with the focus of its practice.

Addleshaw Goddard managing partner Mark Jones said: 'Enact is a successful business which has attained real momentum since its launch and its future as an independent company is assured.'

Chris Baker