JLT sells stake in French broker to Ardian

Jardine Lloyd Thompson (JLT) has sold its stake in Milestone, the holding company of its French associate Siaci St Honoré, to private investment company Ardian.

Ardian, formerly known as Axa Private Equity, will acquire a 26.2 percent stake in Milestone. The transaction is expected to complete by the end of April 2015.

Siaci St Honoré, an insurance broker and employee benefits service, has a longstanding specialty focused trading relationship with JLT that goes back over 20 years.

The two businesses will continue to work together on a number of joint ventures and initiatives in areas including energy, construction, marine and cargo and credit and political risk, as well as service shared international clients on a global basis.

Siaci will remain the exclusive partner of the JLT International Network in France alongside JLT’s other fully owned, associate and network partners in Europe and around the world.

This follows the decision by Siaci’s shareholders to exit or reduce their holdings and seek a new majority investor to finance the business’ expansion plans.

The proposed transaction will create an approximate exceptional gain for JLT of £21 million in 2015, with the net proceeds of £82.1 million being payable in cash and used to repay borrowings.

Milestone’s (gross assets as at December 31, 2013 were £457 million. Profit before tax for the 12 months to December 31, 2013 was £24 million and its contribution as an associate to JLT was £5 million.

Dominic Burke, group chief executive of JLT, said: "Ardian is one of the pre-eminent private equity investors in the European market and are well placed to take the business forward. We are pleased that we have been able to secure a very attractive price for our stake while ensuring a continued commercial and strategic relationship with Siaci St Honoré and its people to the benefit of all of our clients.”