Increased Investment in Summa
B.P. Marsh & Partners PLC
04 February 2008
Date: 4th February 2008
On behalf of: B.P. Marsh & Partners Plc ('B. P. Marsh' or the 'Company')
B.P. Marsh & Partners Plc
B.P. Marsh and a private Spanish investor agree to invest €8 million of new
capital in Summa for acquisitions
B.P. Marsh & Partners Plc (AIM: BPM), a niche venture capital provider to early
stage financial services businesses, announces that it has agreed to invest a
further €4m in Summa Insurance Brokerage, S.L. ('Summa'), a Madrid based
consolidator of regional brokerages in Spain, alongside €4m from a private
Spanish investor. In addition B.P. Marsh will be converting €1m of loans
currently outstanding. As a result of this new investment B.P. Marsh will
increase their stake from 35% to 48.625%, the new Spanish investor will acquire
28.625% with Summa's management reducing from 65% to 22.75%.
The €8m of new capital will be invested in three tranches of €2.67m, expected to
be made over a three year period to facilitate the next stage of Summa's
expansion plans across Spain. B.P. Marsh's contribution will be €1.32m per
tranche, with the first payment having been made today. As a result the
Company's total commitment will be €6.5m in equity and €1m in loans. B.P. Marsh
will own 48.625% of Summa immediately, notwithstanding that it will be investing
its new equity over a three year period.
B.P. Marsh initially invested in Summa in January 2005, agreeing to provide
€1.5m in equity and €1.5m in loans for a 35% shareholding. In January 2007 the
Company agreed to extend the loan facility to €2m. The valuation of the
Company's equity shareholding in Summa as at 31 July 2007 was €1.8m, with the
loans being valued at €2m.
Since B.P. Marsh's initial investment, Summa have acquired nine brokers, six of
which are directly owned through Summa, with three being acquired by
subsidiaries. They are 'Aldave' and 'Erpa' in Navarra, 'JAC' and 'Aranguren' in
Extremadura, 'Asgal' and 'Sergal' creating the largest independent broker in
Galicia, 'Falco' in Comunidad Valenciana, 'Citibroker' in Madrid and 'Castillo'
in Andalusia. Summa will seek to continue to replicate its success in other
regions across Spain and to develop the acquired portfolios with further
acquisitions.
The Group currently manages around €30m in premiums, and the new investment will
allow the business to grow more rapidly. Summa made a loss before taxation of
approximately €120,000 during the 12 months ended 31 December 2006, on an
unconsolidated and unaudited basis. Consolidated, but unaudited, management
accounts show that Summa made a loss before taxation for the 10 month period
ended 31 October 2007 of approximately €20,500.
Commenting on the investment, Brian Marsh OBE, B.P. Marsh's Chairman, said:
'We are delighted that our view that there are significant opportunities for
Summa has been shared by a highly respected private Spanish investor. In joining
us as an investor, he has recognised Summa's excellent growth potential. We
believe that, in many respects, Spain's insurance market today is where the UK
market was 25 years ago and that those companies that can first establish a
national presence, will gain most when valuation multiples start to catch up
with the UK.'
Miguel del Riego of Summa, commented:
'We are delighted with the investment we have received from our partners B.P.
Marsh and a Spanish private investor through his investment vehicle 'Alvapaco'.
This will enable us to pursue some exciting opportunities that we have already
identified to create a substantial brokerage group operating across the length
and breadth of Spain.'
Further information on Summa is available at the company's website:
www.grupo-summa.com
- ends -
For further information:
B.P. Marsh & Partners Plc www.bpmarsh.co.uk
Brian Marsh OBE +44 (0)20 7730 2626
Nominated Adviser
Nabarro Wells & Co. Limited
David Nabarro/Marc Cramsie +44(0) 20 7710 7400
Redleaf Communications (PR to BP Marsh)
Emma Kane/Tom Newman +44 (0)20 7822 0200
-ends-
Notes to Editors:
About B.P. Marsh & Partners Plc
B.P. Marsh's current portfolio contains eleven companies. More detailed
descriptions of the portfolio can be found at www.bpmarsh.co.uk.
Over the past 18 years, 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.
Managing Director, Natasha Dunbar, has over 10 years' experience in the
financial services industry. Having joined the Company in 1994 she was made
managing director in March 2002. Natasha is responsible for the day to day
running of all operational aspects of the business and works closely with Brian
Marsh in defining the strategic development of the Company.
Francis de Zulueta is the Company's Development Director. With a wide-ranging
knowledge of the financial services market, he seeks out, researches and
evaluates potential new investments for B.P. Marsh. Following a 23-year broking
career with Willis Faber and Aon, among others, he took an active interest in
the mergers, acquisitions and venture capital business of Marsh McLennan.
Jonathan Newman is the Group Director of Finance and has 10 years' experience in
the financial services industry. Jonathan advises investee companies through
several non-executive board appointments and evaluates new investment
opportunities.
Robert King is a Director and Group Company Secretary. He joined the Company in
May 2003 having started his career at PricewaterhouseCoopers. Since joining B.P.
Marsh he has taken on responsibility for the Group's legal, compliance and
secretarial functions and played a key role in the flotation of the Company.
This information is provided by RNS
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