The Ardonagh Group has announced that it has exchanged contracts in relation to the purchase of Carole Nash Insurance Consultants Limited (subject to FCA and SRA approval).
Carole Nash will join Autonet within The Ardonagh Group distribution segment.
The Group has also obtained commitments to purchase, subject to financing conditions, up to approximately £55 million of the Group’s existing 8.375% GBP Senior Secured Notes due 2023. The Group currently intends to fund the purchase price with a combination of debt and existing liquidity.
Upon completion of this acquisition, the Group estimates that LTM Pro Forma Adjusted EBITDA for H1 2017 would have been approximately £147.4 million (taking into account the EBITDA of Carole Nash, Mastercover and certain cost synergies) and that the net secured leverage ratio as of June 30, 2017 would have been 5.55x.
Carole Nash is the largest motorcycle insurance broker in the UK and a specialist brand renowned for quality and service. In 2016, the company reported income approaching £29 million.
400 people are employed at the Carole Nash headquarters in Altrincham, South Manchester, with a further 30 in Dublin. The company has been based in South Manchester since its formation in 1985 by founder Mrs Carole Nash OBE.
Commenting on the news today, CEO of The Ardonagh Group David Ross said: “Carole Nash is a pre-eminent brand and market leader, a hugely successful business and therefore an ideal addition to the Group as part of our carefully targeted acquisition strategy. We have admired the business for a long time and are really happy to be welcoming them into the fold as another important addition to The Ardonagh Group family.”
David Newman, CEO of Carole Nash added: “As a management team, our plans to keep building our brand and market share mean we have been looking for a home where we can build on the reputation we have fostered over many years, ensuring longevity of our much admired service and expertise. We have longstanding relationships with the Ardonagh management team and we are genuinely excited by the momentum that is so clear to see across the Group. Their understanding of the Company we have built, the strong relationships we enjoy with our insurance partners and of our loyal client base give us the springboard we need to keep getting better and better.
As we start to investigate the opportunities to collaborate with like-minded businesses within the Ardonagh Group and to build on our individual strengths within a market we collectively dominate, I feel sure we will create a very special opportunity for both our people and our customers.”
Ian Donaldson, CEO of Autonet also said:
“Carole Nash is a fantastic business and we fully intend to embrace the pioneering work they have done in the motorcycle market. The ethics which underpin the business, backed by their specialist knowledge and genuine passion, make this first acquisition led by Autonet within the Ardonagh family really special.
The Carole Nash brand complements our business lines beautifully, and brings with it strong affinity partnerships. We can’t wait to get the teams collaborating on creating a unique and formidable force in UK motor insurance broking.”
The Ardonagh Group today also announces that it has exchanged contracts in relation to the purchase of Mastercover Insurance Services Limited (“Mastercover”)
Mastercover is a specialist SME insurance broker focusing on niche products across personal and commercial lines, with a leading position in both driving instructor and removal company cover. In 2016 the business generated income in excess of £1.5 million.
Mastercover will join Towergate Insurance Broking within The Ardonagh Group distribution segment.