27 September 2018
The Ardonagh Group (“the Group”) today announces that it has agreed to acquire Swinton Group Limited (“Swinton” or “the Company”) from Covéa Group for a consideration of approximately £165 million, subject to normal completion mechanics.1
The Group intends to fund the purchase price with committed financing from our existing bank group, along with cash from monetizing certain Swinton assets.
Swinton Group is a leading UK personal lines broker, with a focus on motor and home insurance and additional leadership positions in specialist lines including caravan, motorhome and motorbike.
In the year ending 31 December 2017, Swinton reported turnover of £168 million, in excess of one million customers and 1.6 million live policies2.
1,550 people are employed by the Company, which was founded in 1957. It has invested £45 million over two years in digital capabilities and transformation in response to changing customer buying preferences.
CEO of The Ardonagh Group David Ross said:
“We are delighted to be welcoming Swinton into the Ardonagh group of companies; a personal lines household name steeped in heritage and another best in class brand which will be the perfect addition to our portfolio.
The opportunity to share expertise in the development of our digital platforms to accelerate the scale and scope of our offerings is clear to see. Swinton is a hugely complementary, highly accretive acquisition, enabling us to occupy a significant space in personal lines broking.”
Pierre Michel, Managing Director of Reinsurance and International Operations at Covéa Group said:
“Over the last few years, Swinton and its Executive Team have transformed and repositioned the business and now is the right time for it to move into new ownership.
Swinton will become part of a growing and innovative UK insurance brokerage group, and I am confident that being part of The Ardonagh Group will provide Swinton with a great platform from which to deliver significant benefits to all its stakeholders, including its customers and employees.”
A call for investors hosted by CEO David Ross and CFO Diane Cougill will be held on Tuesday 2 October 2018 at 1700hrs (UK) or 1200hrs (EDT). Dial in details are available upon request from investor.relations@ardonagh.com.
1 Subject to FCA approval
2 includes add on products
Notes to Editors
THE ARDONAGH GROUP
The Ardonagh Group is the UK’s largest independent insurance broker with global reach. We are a network of over 100 office locations and a workforce of almost 6,000 people. The Ardonagh Group was created in June 2017, bringing together Autonet, Chase Templeton, Direct Group, Price Forbes and Towergate, with the additional acquisitions of Healthy Pets in August 2017, and Carole Nash and Mastercover announced in December 2017. Our understanding of the communities we serve, together with our scale and breadth, allows us to work with our insurer partners to deliver solutions that meet our customer needs.
Fenchurch Advisory Partners LLP acted as financial advisors to The Ardonagh Group.
THE SWINTON GROUP
Swinton is a personal lines insurance broker, with over one million customers. The Company offers a range of insurance products from car to home, bike to van, commercial to taxi insurance, plus additional services like breakdown cover.
Swinton is a UK subsidiary of leading French mutual insurance group Covéa, which is the leading property and liability insurer in France and serves over 11.4 million policyholders, with earned premiums of €17.2bn in 2015.
THIS DOCUMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN INVITATION OR OFFER TO ACQUIRE, PURCHASE OR SUBSCRIBE FOR SECURITIES. ANY OFFER OF SECURITIES MAY BE PROHIBITED OR RESTRICTED IN VARIOUS JURISDICTIONS INCLUDING THE UNITED STATES, THE EUROPEAN ECONOMIC AREA AND THE UNITED KINGDOM.
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