GRP 'confident' of acquisition pipeline; Newstead strikes first deal

Birmingham-based commercial lines broker Newstead has made its first acquisition to accelerate inorganic growth after becoming part of Global Risk Partners (GRP), an acquisitive insurance broking and managing general agency (MGA) investment vehicle, in November 2020.

Newstead Insurance Brokers is acquiring 100 percent of the share capital of Alford Burton and Company, which provides commercial insurance for SMEs, including manufacturers, professionals, contractors, and charities.

GRP said its "acquisition pipeline is well-developed" and the company is confident to land further deals as brokers capitalise on opportunities to fuel growth.

Stephen Ross, head of M&A at GRP, said: "The increasing complexity of regulation and compliance as well as potential changes to the tax regime have heightened our expectations that this will be a busy year for deals.”

“Paul O’Donnell and the Newstead team have made a fast start to their expansion plans since becoming part of GRP and this exciting deal with Alford Burton continues the momentum,” he added.

According to Newstead director Paul O’Donnell “Alford Burton is a high-quality local insurance broker who will add considerable scale to our operation and help us to rapidly build out our presence in Birmingham and the West Midlands.”

O’Donnell noted that Alford Burton will benefit from being part of a bigger group, especially in the current uncertain economic environment and the hardening commercial market.

Alford commented: “This is a great deal for us and we look forward to being part of a bigger group. Newstead’s wide range of services, plus the added benefits of being part of GRP, were compelling reasons for us to make the decision to sell. We are excited by the opportunity to continue to grow under new ownership.”

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