ACCOUNTANCY firms Johnston Carmichael and Ritson Smith have combined forces in one of the largest merger deals seen in the sector in Scotland in recent years.

The name of Aberdeen-based Ritson Smith, founded in 1924 and with further offices at Aboyne and Ellon in the north-east, will disappear under the agreement. All 60 staff at the firm, including its seven partners, will transfer across.

The addition of clients and employees puts Johnston Carmichael, the largest independent Scottish firm, into the top 20 accountancy firms in the UK even though its operations are entirely focused on Scotland.

Following the merger it will have more than 500 staff, including 54 partners, across 12 offices and revenue in excess of £30 million.

Sandy Manson, Johnston Carmichael chief executive, said: "This is the biggest merger in Johnston Carmichael's 75-year history and one of the biggest in the Scottish accounting scene.

"Ritson Smith is a highly respected firm which we have known for a number of years. It is a good match of professional ethos and values.

"One of the attractions for us is the scale of the combined practice in the north-east of Scotland will make it such a force in the market. This is combining two strong firms, because we see by putting them together, we can provide our clients and people with a more attractive offering.

"Our partners and staff will be integrated from the outset, thereby enabling both our teams to work as one unit."

Mr Manson highlighted the additional scale in tax and corporate finance as being particularly important in serving industries such as food production and oil and gas in the north-east.

He also refused to rule out further mergers in other parts of the country.

He said: "It is about getting the right mix. You have to be very careful when you enter into mergers to make sure you get that chemistry right.

"We are open to finding firms with a similar ethos who want to build a really outstanding professional service firm. We want to be the firm of choice in Scotland. This merger is a major step towards that vision."

Ritson Smith's Niall Farquharson, managing partner, will become joint head of Johnston Carmichael's Aberdeen office along with the incumbent Andrew Walker.

Mr Farquharson said: "We are delighted to be joining forces with Johnston Carmichael to become part of a leading firm with access to the full range of services our clients are looking for.

"We know the Johnston Carmichael team well and think there is an excellent fit for our people. In today's challenging and ever-changing times, we are all very positive about the benefits which the merger will bring to both firms in terms of additional capability to service and support our clients."

The other Ritson Smith partners moving are Neil Harper, Ewen Alexander, Jean Main, John Laing, George Burnie and Graham Alexander.