Acquisitions and placing
29 January 2008
Jelf Group plc, an independent full-service brokerage that supports businesses and related individuals, is pleased to announce the acquisitions of the entire issued share capital of Manson Insurance Group Limited ("Manson"), Bartlett Davies Bicks Limited ("BDB") and Carter & Co. Risk Management Limited ("CRM"), a significantly oversubscribed conditional placing to raise £21.0 million (before expenses) and a conditional subscription by 3i Quoted Private Equity Limited (" QPE") to raise £26.0 million (before expenses).
HIGHLIGHTS
Three strategic acquisitions
- Acquisition of Manson, a Manchester-based general insurance, healthcare and financial services broker. This represents Jelf's first acquisition outside Southern England and South Wales and will act as a hub for further organic and acquisition-based growth. The acquisition of Manson will be satisfied by an initial consideration of £16.2 million, paid in cash and shares, and will bring gross written premium ("GWP") (in both insurance and healthcare) of approximately £43 million and a strong strategic presence in the North West of England
- Acquisition of BDB and CRM in Devon, two general insurance brokerages, for an estimated total consideration of £2.9 million in cash and shares. Together they will contribute additional GWP of approximately £6 million. These businesses will be incorporated within existing Jelf operations in Devon to give scale and critical mass
- The acquisitions increase Jelf's insurance GWP to around £174 million (from approximately £150 million) and healthcare GWP to around £150 million
Proposed institutional placing and subscription to raise £47.0 million (before expenses)
- The proceeds of the placing and subscription will allow Jelf to capitalise on future acquisition opportunities, to fund future investments and, where appropriate, to reduce bank indebtedness.
- Proposed subscription of £26 million from QPE, a public closed-end investment company and new investor in Jelf
- QPE will, on completion, have a 24.6 per cent. holding in Jelf. Bruce Carnegie-Brown, Managing Partner of 3i Investments plc (the investment adviser of QPE) will, on completion of the Subscription, be appointed to the Board
Alex Alway, group chief executive of Jelf, said:
"This series of transactions represents a significant further development for Jelf. We have made three attractive acquisitions and extended our reach into the North West of England, enhancing our position as one of the leading independents in a shrinking regional insurance broking sector.
"Despite market conditions the fundraising was significantly oversubscribed and brings us a large number of new institutional shareholders. The support we have received from new and existing investors is a positive endorsement of our strategy. We are delighted to welcome 3i Quoted Private Equity Limited as an investor and look forward to their valuable support and the experience they bring to the Company. We look forward to the next phase of Jelf's growth with confidence."
For further information:
Jelf Group
Tel: 01454 272 713
Alex Alway, group chief executive
Pelham PR
Tel: 0207 743 6362
Polly Fergusson, Damian Beeley
Cenkos Securities plc
Tel: 020 7397 8900
Ian Soanes