Towergate holding Ardonagh snaps up brokers Carole Nash and Mastercover
The new UK insurance group Ardonagh has announced its intention to acquire UK motorcycle broker Carole Nash Insurance Consultants and SME broker Mastercover.
According to news reports the deal is valued at between £60 million and £65 million.
The Group has also obtained commitments to purchase up to £55 million of the group’s existing 8.4 percent GBP Senior Secured Notes due 2023. The group intends to fund the purchase price with a combination of debt and existing liquidity.
The Ardonagh Group combines Autonet, Chase Templeton, Direct Group, Price Forbes and Towergate.
Carole Nash will join Autonet within The Ardonagh Group distribution segment.
Upon completion of this acquisition, the group estimates that the last twelve months (LTM) Pro Forma Adjusted EBITDA for H1 2017 would have been approximately £147.4 million (taking into account the EBITDA of Carole Nash, Mastercover and certain cost synergies) and that the net secured leverage ratio as of June 30, 2017 would have been 5.55x.
In 2016, Carole Nash reported income approaching £29 million. The company is headquartered in Altrincham, South Manchester since its formation in 1985.
"Carole Nash is a pre-eminent brand and market leader, a hugely successful business and therefore an ideal addition to the Group as part of our carefully targeted acquisition strategy," said The Ardonagh Group CEO David Ross. "We have admired the business for a long time and are really happy to be welcoming them into the fold as another important addition to The Ardonagh Group family."
David Newman, CEO of Carole Nash, commented: "We have longstanding relationships with the Ardonagh management team and we are genuinely excited by the momentum that is so clear to see across the Group. Their understanding of the Company we have built, the strong relationships we enjoy with our insurance partners and of our loyal client base give us the springboard we need to keep getting better and better."
Ian Donaldson, CEO of Autonet, added: "Carole Nash is a fantastic business and we fully intend to embrace the pioneering work they have done in the motorcycle market. The ethics which underpin the business, backed by their specialist knowledge and genuine passion, make this first acquisition led by Autonet within the Ardonagh family really special.
"The Carole Nash brand complements our business lines beautifully, and brings with it strong affinity partnerships. We can’t wait to get the teams collaborating on creating a unique and formidable force in UK motor insurance broking."
Furthermore, The Ardonagh Group has announced its plan to purchase SME broker Mastercover Insurance Services, a specialist SME insurance broker focusing on niche products across personal and commercial lines.
In 2016, Mastercover generated income in excess of £1.5 million.
Mastercover will join Towergate Insurance Broking within The Ardonagh Group distribution segment.
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