Electra Partners and its portfolio company Davies Group ("Davies") have completed the acquisition of Argent, the property and liability loss adjusting business of Parabis Group. A further £2 million of equity funding was provided in support of the transaction by funds under the management of Electra Partners.
Electra Partners led the acquisition of Davies, a leading insurance claims service provider, in 2011. The company handles over 150,000 property, commercial, motor and specialist liability claims each year on behalf of insurance companies, MGAs, large corporates and brokers, providing a full range of services including claims management, loss adjusting, restoration and repair. This is the fifth bolt-on acquisition completed by Davies, following Ufton Associates in 2012, Garwyn Group in 2013, and Associated Loss Adjusters and Managed Fleet Services in 2015, and continues the successful strategic repositioning of the group.
Alex Fortescue, Chief Investment Partner at Electra Partners, said:
"This latest deal is the fifth bolt-on we have completed for Davies since 2012 and the twelfth announced across Electra's portfolio in the past 12 months. Bolt-on acquisitions are an effective way of increasing equity value, by acquiring earnings at attractive multiples, as well as improving the scale, mix and growth opportunities of our portfolio companies.
"Dan Saulter and his team have established an impressive record of successfully acquiring and integrating complementary businesses. This acquisition adds to Davies's existing presence in property and liability claims management, and strengthens the company's position further as it executes its organic and acquisition-led growth strategy."
Alex Fortescue and Nicola Gray are responsible for the investment in Davies Group.
This continues a busy start to Electra's financial year, which since October has included the realisations of Zensar Technologies and of MIMS and MRO from AXIO Data Group; the announcement of an
£89 million investment in the acquisition of PhotoBox Group; and the completion of the merger of Park Resorts Group with Parkdean Holidays.
Electra Partners refers to Electra Partners LLP acting on behalf of its clients Electra Private Equity PLC and Electra Partners Club 2007 LP.
For further information please contact:
Andrew Honnor and Matthieu Roussellier, Greenbrook Communications
+44 (0)20 7952 2000
Andrew Kenny and Nicholas Board, Electra Partners
+44 (0)20 7306 3902
Note to Editors:
About Electra Partners LLP
Electra Partners is an independent private equity fund manager with over 25 years' experience in the mid-market. During the last 25 years it has invested in excess of £4.5 billion in over 200 deals. As at 30 September 2015, the firm had funds under management of over £1.8 billion including capital available for investment of nearly £350 million.
Electra Partners' flexible investment strategy allows it to invest broadly across the private equity market with a particular focus on Buyouts and Co-investments, Secondaries and Debt. In addition to this, its long-term capital base means it is not constrained by expiring investment periods or exit pressure driven by fund raising cycles and is therefore able to realise investments only when returns are maximised for its investors.
The firm's major client is Electra Private Equity PLC ("Electra"), a private equity investment trust which has been listed on the London Stock Exchange since 1976. Electra's long-term investment performance has been consistently superior to private equity and other benchmarks. Over the ten years to 30 September 2015, Electra has seen diluted NAV per share growth of 244%. This is seven times the NAV per share return of the Morningstar Private Equity Index (ex. Electra). It is also equivalent to a ten-year annualised return of 13%, at the upper end of Electra's target range of 10-15% over the long-term.
For further information please visit www.electrapartners.com.
Electra Partners LLP is authorised and regulated by the Financial Conduct Authority.
About Davies Group
Davies is a leading insurance claims service provider. It employs 580 people across the UK and Republic of Ireland and offers a full spectrum of validation and fulfilment services including claims management, loss adjusting, restoration and repair. Davies' focus is on servicing claims relating to residential property, commercial and specialist liability policies. The business handles over 150,000 claims each year and manages more than £600 million of indemnity spend.
For further information please visit www.davies-group.com.