The Ardonagh Group has announced (23 November 2022) that it has agreed to acquire Envest Pty Ltd.
Headquartered in Brisbane, Queensland, Envest is an insurance investment and distribution business with a diverse portfolio of brands and national footprint. Under the terms of the agreement, Ardonagh intends to acquire Envest for a consideration of AUD482 million (£270 million) which will be funded with a combination of equity and debt.
The businesses being acquired as part of Envest include Aviso Group, a network of broking offices across five states managing circa AUD405 million in gross written premium, and 10 established MGAs operating both direct to consumer and intermediated.
The combined portfolio has over 550 employees and recorded revenue of AUD76.7 million (£42 million) for the financial year ended 30 June 2021.
Envest will be acquired by Ardonagh Australia Pty Ltd (“Ardonagh Australia”), which will trade locally under the Envest name and be led by current Managing Director Greg Mullins upon completion of the transaction. Envest will operate as part of Ardonagh Global Partners, which is led by CEO Des O’Connor.
Ardonagh Global Partners’ other Australian assets, Resilium Insurance Broking and Epsilon Underwriting, will operate as normal and continue to be led by their existing management teams.
Adrian Kitchin, Chief Executive Officer at Ethos Broking Australia, and Executive Director of Resilium and Ardonagh Australia, will become part of the executive team within Envest. Paul Lynam will continue in his role as Chairman of Ardonagh Australia.
Commenting on the announcement, Des O’Connor said: “This is a hugely complementary acquisition, aligning neatly with our Group’s footprint both globally and in the Australian market, which has grown substantially since our maiden investment in Resilium in February 2021. It provides a proven platform to accelerate our growth ambitions in the region.
“Greg leads a highly experienced management team with deep expertise in the market and together they have grown a strong people-focused culture over the past six years. We look forward to rallying the scale and experience of the wider Ardonagh Group behind them as they continue to invest in and empower the best and brightest entrepreneurial talent in the Australian market.”
Adrian Kitchin added: “I look forward to joining forces with the team at Envest and to execute our shared plan of growth through professionalism, service and innovation. We will continue to leverage our experience and connections as we embark on this exciting new journey together.”
Greg Mullins said: “Today’s announcement marks the start of a new and exciting chapter for us all. In Ardonagh we have found a strategic partner supportive of our ambitions, with a shared vision to empower independent broking and underwriting businesses to grow by delivering innovative solutions and the highest levels of service. In addition, the broader management team rolls forward as meaningful shareholders in the Australian business, maintaining strong alignment with our global parent”.
“Thanks to the efforts of our colleagues across all the companies that make up Envest, we have seen a tremendous period of successful growth. We plan for that upward trajectory to continue, leveraging the global insurance relationships, placement capability and experience Ardonagh and its management team have to offer.”