CBG Group plc, a Manchester-based insurance broker and financial adviser, has increased its offering with the purchase of Barclay Brown Holdings.
CBG Group plc, a Manchester-based insurance broker and financial adviser, has increased its offering with the purchase of Barclay Brown Holdings.
The initial consideration was £1.45 million, but an additional, deferred consideration of up to £1.85 million is available in cash and shares. The amount, payable over the next two years, is dependent on achievement of performance targets.
The initial consideration has been satisfied from the group’s own cash resources at completion. The deferred consideration of a maximum of £1,250,000 is payable in two tranches of £625,000 in March 2009 and March 2010, subject to Barclay Brown achieving agreed turnover levels in the two years following completion. The vendors may elect to take up to a maximum of £150,000 in shares of the additional consideration of a maximum of £600,000.
Barclay Brown is a provider of specialist niche insurance products and general insurance broking services, with offices in Manchester, Mold, Preston and Waterfoot. The existing directors of Barclay Brown will remain with the enlarged business.
Barclay Brown turnover in the period totalled some £1.7 million, with profit before tax of £237,619.
CBG Group chairman Laurie Turnbull said: “The acquisition of Barclay Brown is significant for CBG as it consolidates our strong position within the northwest market. This is a further material step for our business, and the benefits to be derived from consolidating and integrating Barclay Brown will enhance our client service proposition and extend value for our shareholders. The group remains active with our expansion plans, both organic and acquisition led, and we look forward to the next phase of our development.”
CBG was advised by corporate partner Greg Sher of Manchester law firm Shammah Nicholls. Sher, who was assisted by Nick Ducker, commented: “CBG Group is an extremely well led and a strong performing company. CBG’s insight in the business of the target group was particularly helpful in enabling us to achieve a well- balanced transaction for our client, from both a legal and business perspective.”
The team at solicitor Aaron & Partners which provided legal advice to the vendor on the disposal was led by corporate partner Clare Gray. Gray was assisted by Heidi Donnellan, Rowena Ridgeway, property lawyer Eliot Hibbert and employment lawyer Catherine McCartney. The firm was introduced to the deal as it had previously acted for the Barclay Brown group of companies. Rick Payne led the team from accountant Bennett Brooks & Co which provided corporate finance advice to the vendor.
