CBG Group plc, a corporate general insurance, risk management and financial services intermediary, has acquired Marcus Hearn & Co, a London-based provider of specialist insurance products, from the Marcus Hearn Group.

CBG Group plc, a corporate general insurance, risk management and financial services intermediary, has acquired Marcus Hearn & Co, a London-based provider of specialist insurance products, from the Marcus Hearn Group.

Manchester-based CBG will pay up to £2.7 million in cash and shares for the company. This comprises an initial consideration of £1.8 million, with a deferred sum of £825,000 payable in two tranches by December 2009.

The acquired business will continue to trade as Marcus Hearn and led by its existing management.

CBG’s chairman, Laurie Turnbull, said this acquisition extends the group’s operations beyond the northwest. “CBG now has offices in Manchester and London as well as five regional centres and employs some 150 people. The group is now well placed to continue its expansion plan and we look forward to the next phase of development.”

The acquirer was advised by Greg Sher, a partner at Shammah Nicholls LLP. Sher said: “Being an acquisition of a smaller yet successful business in a similar sector, the deal represents an opportunity for CBG to increase its share in the key London market.

“For Shammah Nicholls this was an opportunity to reinforce its excellent relationship with CBG,” he added. “We are proud that we could help CBG successfully complete this acquisition with the minimum of fuss.”

The vendor was supported on the disposal by Clive Borthwick, a partner at law firm Taylor Walton LLP.

Taylor Walton’s team included solicitor Shasta Qayyum, employment partner Heather Cowley, assistant solicitor Vidhya Mylvaganam and commercial property specialist Georgina Lunn.

“The key point about this deal was to safeguard the interests of our client, and ensure the smooth transition for the remaining executive directors and staff to the new owner,” Borthwick said. “We were able to demonstrate the breadth of Taylor Walton’s expertise, not just in corporate law, but also in employment and commercial property.”

Marcus Hearn provides niche insurance products and general insurance broking services directly and through a network of some 450 brokers. It reported a pre-tax profit of some £70,000 from a £1.3 million turnover in the year to October 2006.