B.P. Marsh & Partners PLC
Date: 17th February 2017
On behalf of: B.P. Marsh & Partners Plc ("B.P. Marsh", the "Company" or the "Group")
For immediate release
B.P. Marsh & Partners Plc
Investment in CBC UK Limited
B.P. Marsh and Partners Plc (AIM:BPM), the specialist private equity investor in early stage financial services businesses is pleased to announce that it has acquired, through a newly established company Paladin NewCo Limited ("Paladin"), an effective 35% shareholding in CBC UK Limited ("CBC").
CBC is a Retail and Wholesale Lloyd's Insurance Broker, offering a wide range of services to commercial and personal clients as well as broking solutions to intermediaries. For the year ending 31st December 2017, CBC has a forecast revenue of £5,549,000 with a forecast EBITDA of £634,000.
The Group has partnered with CBC's management team to buy out an existing shareholder, delivering a 50% shareholding to CBC's management team, a 15% shareholding to Andrew Wallas, who will join CBC as Non-Executive Chairman, and 35% to B. P. Marsh.
The acquisition of CBC was made through Paladin to which the Group provided £4,000,000 of funding. This was provided via the subscription for a 35% shareholding in Paladin for a cash consideration of £3,500, additionally, the Group provided a Loan Facility of £3,996,500 which was fully drawn down on completion.
CBC's CEO, Robert Cottingham, has over 30 years' experience in the insurance industry having held a number of senior positions, including at Glencairn Limited (now part of Willis Towers Watson), where he was responsible for the company's Professional Risks Division. Robert joined the CBC Board in 2011 and became Chief Executive in November 2015.
CBC's new Chairman, Andrew Wallas, brings 40 years of insurance experience to CBC. During that time he became one of the youngest managing directors of a Lloyd's broker. He also established what became Glencairn Ltd, which was ultimately acquired by what is now Willis Towers Watson and was Non-Executive Chairman of Martello Underwriting, backed by Penta Capital, which was sold to RSA plc.
Dan Topping, Chief Investment Officer of the Company, who will join the Board of CBC as a Non-Executive Director, commented: "This is a classic MBO transaction for B.P. Marsh, in partnership with a motivated Management Team and with involvement from one of our long-standing associates. We are pleased to invest in a Lloyd's broker to which we can bring our experience and market knowledge, given our track record of developing these businesses. I am also glad to be reigniting the Group's relationship with Andrew Wallas which has proved to be a successful formula in the past."
Andrew Wallas, Non-Executive Chairman of Paladin, commented: "CBC is a long established Lloyd's broker with a solid client base, talented and motivated people and substantial unrealised potential. I am delighted by this dynamic opportunity to re-enter the London Insurance Market and to renew my long-standing relationship with B.P. Marsh."
For further information:
B.P. Marsh & Partners Plc www.bpmarsh.co.uk
Brian Marsh OBE / Camilla Kenyon +44 (0)20 7233 3112
Nominated Adviser & Broker
Atholl Tweedie / Adam James / Charles Leigh-Pemberton +44 (0)20 7886 2500
Notes to Editors:
About B.P. Marsh & Partners Plc
B.P. Marsh's current portfolio contains fourteen companies. More detailed descriptions of the portfolio can be found at www.bpmarsh.co.uk.
Since formation over 25 years ago, the Company has assembled a management team with considerable experience both in the financial services sector and in managing private equity investments. Many of the directors have worked with each other in previous roles, and all have worked with each other for at least five years.
Prior to Brian Marsh's involvement in the Company, he spent many years in insurance broking and underwriting in Lloyd's as well as the London and overseas market. He has over 30 years' experience in building, buying and selling financial services businesses, particularly in the insurance sector.
Alice Foulk joined B.P. Marsh in September 2011 having started her career at a leading Life Assurance company. In 2014 she took over as Executive Assistant to the Chairman, running the Chairman's Office and established herself as a central part of the management team.
In February 2015 she was appointed as a Director of B.P. Marsh and a member of the Investment Committee. In January 2016 Alice was appointed Managing Director of B.P. Marsh.
In her position as Managing Director, Alice is responsible for the overall performance of the Company and monitoring the Company's overall progress towards achieving the objectives and goals of the Company, as set by the Board.
Dan Topping is the Chief Investment Officer of B. P. Marsh, having been appointed as a Director in 2011. He joined the Company in February 2007, following two years at an independent London accountancy practice. Dan is the Senior Executive with overall responsibility for the portfolio and investment strategy of B.P. Marsh.
Dan graduated from the University of Durham in 2005 and is a member of the Securities and Investment Institute and the Institute of Chartered Secretaries and Administrators.
Dan is a standing member of the B.P. Marsh Investment and Valuation Committees and currently serves as a Board Director across the portfolio.
Camilla Kenyon was appointed as Head of Investor Relations at B.P. Marsh in February 2009, having four years' prior experience with the Company. She was appointed to the main board in 2011. Camilla is Chair of the New Business Committee evaluating new investment opportunities. She has a number of nominee directorships over two investee companies and is a standing member of the Investment Committee. She is a Member of the Investor Relations Society.
Jonathan Newman is a Chartered Management Accountant and is the Group Director of Finance and has over 17 years' experience in the financial services industry. Jon graduated from the University of Sheffield with an honours degree in Business Studies and joined the Group in November 1999, following two years at Euler Trade Indemnity and two years at a Chartered Accountants. Jon is a Member of the Chartered Global Management Accountants, the Chartered Management Accountants and the Chartered Institute of Securities and Investment.
Jon was appointed a Director of B.P. Marsh & Company Limited in September 2001, and Group Finance Director in December 2003 and was instrumental in the admission of the Group to AIM in February 2006. Jon is a member of the B.P. Marsh Investment and Valuation Committees and currently serves as a Board Director for Walsingham Motor Insurance Limited, and provides senior financial support and advice to all companies within the Group's portfolio as well as evaluating new investment opportunities.