The Ardonagh Group, the UK’s largest independent insurance broker, today announced that it has exchanged contracts to acquire Swinton Group for £165 million. The summary of the deal is as follows:
About Swinton
- Swinton is one of the best-known insurance brands in the UK offering a range of personal line insurance products from a panel of UK insurers covering car, bike, home, commercial, taxi and caravan insurance, plus services such as breakdown and home emergency cover
- It has in excess of 1 million customers in the UK and recorded revenue of £168 million in the year to 31 December 2017
- Founded in 1957 and headquartered in Manchester, Swinton employs 1,550 people
- It has spent £45 million investing in digital capabilities and transformation including a reshaping of its branch network in response to the changing buying needs of customers
About Ardonagh
- The Ardonagh Group was created in June 2017 bringing together five major insurance brands – Autonet, Chase Templeton, Direct Group, Price Forbes and Towergate – supported by a £800 million bond raise
- The Group has since made a number of acquisitions including leading motorcycle insurer Carole Nash and pet insurer Healthy Pets
- The Group currently operates from over 100 locations across the UK employing c. 6,000 people and is headquartered in London
- It announced half year results in August 2018, reporting a 9.1% increase in revenue to £275 million and a 17.6% increase in adjusted EBITDA to £66.5 million
- The Group is led by industry veteran David Ross (CEO) and former Chief Executive of the Financial Services Authority John Tiner (Chairman)
The deal
- Total consideration is £165 million
- It will be funded through a combination of debt and cash
- The acquisition enables Ardonagh to occupy a significant space in personal lines broking, complementing its existing offering via brands such as Autonet, Carole Nash and Towergate
- Swinton will retain its brand and its head office will remain in Manchester
- Swinton will benefit from being part of a larger group, for example leveraging Ardonagh’s digital platform as it looks to accelerate its business growth via online channels