Jelf Group plc, a full-service brokerage, has increased its gross written premium (GWP) to £174 million from £150 million by adding three businesses to its operations.
Jelf Group plc, a full-service brokerage, has increased its gross written premium (GWP) to £174 million from £150 million by adding three businesses to its operations.
The group spent more than £19 million buying Manson Insurance Group, Bartlett Davies Bicks (BDB) and Carter & Co Risk Management (CRM).
Manson is a Manchester-based general insurance, healthcare and financial services broker and is Jelf’s first acquisition outside southern England and South Wales. The deal was worth an initial £16.2 million in cash and shares.
The acquisition of Manson brings Jelf a strategic presence in the northwest and will act as a hub for further organic and acquisitive growth.
The BDB and CRM deals were for £2.9 million and will be incorporated within Jelf’s operations in Devon. These general insurance brokerages will contribute additional GWP of some £6 million to Jelf’s business.
Jelf chief executive Alex Alway said these transactions are a significant development for the group. “We have made three attractive acquisitions and extended our reach into the northwest of England, enhancing our position as one of the leading independents in a shrinking regional insurance broking sector.”
The transactions were funded with the proceeds of a £47 million AIM placing, which will also be used to make further additions to the group.
Jelf was advised on its legal position on the acquisitions and the placing by FSI, which took the group through its debut on AIM four years ago.
FSI partner Nilam Statham led a team of corporate, employment, tax, banking and property specialists. Statham has worked with Jelf on its transactions since its IPO in 2004.
Jelf appointed a team from Mazars’ national insurance group, led by Bristol-based partner Richard Bott, to manage a financial due diligence review of the acquired companies.
Bott, who was supported by tax and insurance specialists, said this is the latest in a series of transactions that the firm has advised Jelf on. “Our experience of working with the group has meant that we have developed an efficient and effective method of working to ensure that key matters are identified, discussed and addressed.
“These acquisitions will expand Jelf’s offering of a professional, client focused service into other key areas of the country,” he added.
Carter & Co’s vendor received financial assistance on the disposal from Linda Lugger, a partner at chartered accountant Peplows, who was supported by tax specialist Duncan Saxby. He ensured the transaction was structured to minimise the tax burden.
Lugger said Peplows has advised the company for several years and provided corporate finance, accountancy and tax advice to complete this complex transaction.
“The transaction proved to have many unusual features resulting in protracted negotiations, which required the full input of all the advisers to achieve a timely completion,” she added. “We had a close association with the company and worked alongside the other professional advisers to ensure that this transaction was a success for all involved.”
