£200 million investment agreed from Advent International
31st January 2011
Towergate Partnership Limited (“Towergate”), Europe’s largest
independent insurance intermediary, today announces that it has
entered into a conditional agreement in relation to a £200 million
investment by Advent International (“Advent”), the global private
equity firm (the “Investment”). As a result of the Investment,
Advent will acquire separate shareholdings in each of Towergate and
Cullum Capital Ventures (“CCV”).
The Investment is conditional upon raising new debt facilities
through the bank and bond markets. The completion of the Investment
and debt capital raising initiative (together, “the Transaction”)
is expected to be in mid-February.
The benefits of the Transaction include:
- Refinancing Towergate’s existing debt facilities, reducing its
total borrowings and establishing a long-term capital structure on
more favorable terms
- Increasing Towergate’s funding capacity to pursue its
acquisition-led growth objective which has been at the core of its
strategy since establishment
- Securing a supportive partner with well-recognised credentials
to assist in the next stage of the group’s development
- Providing opportunities for the group to extend its range of
specialist insurance services to further improve its client
proposition
These benefits will underpin Towergate’s growth strategy which
has already seen it become the largest independent insurance
intermediary in Europe, generating more than £2 billion of gross
written premiums a year.
Andy Homer, CEO of Towergate, said:
“This transaction follows a strong year for Towergate despite
the ongoing tough economic conditions. We will continue to invest
across our business and maintain a strong focus on acquisitions, a
strategy which has delivered significant value over the last
decade.”
Peter Cullum, Chairman and Founder of Towergate, said:
“This marks an important milestone for Towergate and I am
delighted to be working alongside Advent as our new private equity
partner. Advent's investment provides real firepower as the group
reignites its acquisition programme as part of our ambitious growth
strategy.”
Media Contacts
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Peter Hewer
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