News
UK&I - Acquisition - UK and Ireland Insurance - COBRA Holdings PLC, a UK-based retail and wholesale insurance broking group, today announces the acquisition of UKI Holdings Ltd (“UK & Ireland”) and its subsidiary, UK & Ireland Insurance Services Ltd, a Manchester-based general insurance brokerage specialising in Commercial insurance, in particular for the construction industry. COBRA will pay a total consideration of approximately £4.3 million.
COBRA Holdings PLC, a UK-based retail and wholesale insurance broking group, today announces the acquisition of UKI Holdings Ltd (“UK & Ireland”) and its subsidiary, UK & Ireland Insurance Services Ltd, a Manchester-based general insurance brokerage specialising in Commercial insurance, in particular for the construction industry. COBRA will pay a total consideration of approximately £4.3 million.
UK & Ireland has been operating as an insurance broker since 1993, under the brand name UK & Ireland Insurance Services, and has built a strong reputation nationally.
The existing management team, led by James Wrynne, will continue to run the business on a day-to-day basis. Kevin McNeill will become UK Construction Director, and Mike Regan will be assuming the role of Property Director to take advantage of this rapidly expanding part of the business. Martin Hoult maintains control of the infrastructure and Dermot McMorrow one of the founders continues to remain close to the business.
UK & Ireland and its subsidiaries (“the UKI Group”) controls £12 million of Gross Written Premiums (GWP) and in the year to 31 May 2007 generated revenues of £1.6 million and profit before tax of £200,000 (unaudited). The UKI Group’s unaudited net assets as at 31 May 2007 (which included a freehold property) amounted to approximately £987,000.
The acquisition will enable COBRA Insurance Brokers to establish a hub in Manchester, from which it will develop its presence across the North West region through both organic and acquisitive growth. COBRA’s Hub and Spoke strategy is based on the establishment of regional brokers, linked with smaller independent firms within their catchment area. The smaller firms will be either integrated in to the Hub or managed remotely as satellite offices or Spokes.
UK & Ireland will introduce additional income to the Network, increase GWP and offers further potential to redirect business to the Group’s wholesale insurance and underwriting companies.
COBRA intends to leverage UK & Ireland’s strong brand in the construction industry by maintaining the name UK & Ireland Insurance Services for construction business.
The consideration will be paid in three stages. On completion COBRA will pay £2.26 million in cash and allot 613,696 new ordinary shares in COBRA. The remaining consideration is payable in cash in two equal tranches in December 2008 and December 2009. Application has been made for the admission of the new COBRA shares to trading on AIM.
Commenting on the Group’s acquisition, Steve Burrows, Chief Executive of COBRA, said:
“We are delighted to have acquired UK & Ireland, which introduces new revenue streams and opportunities to the Group and provides COBRA Insurance Brokers with a hub in the Manchester region, an area where we are keen to expand.
This is the second acquisition we have completed since COBRA floated on AIM in July and demonstrates our strategy to expand through acquisitive growth and increase our presence throughout the UK provincial market.”
Commenting on the acquisition, James Wrynne, Managing Director of UK & Ireland, said:
“The team at UK & Ireland, who remain unaltered, are extremely excited about the prospect of being involved with COBRA Holdings PLC. We are confident this represents an outstanding opportunity for UK & Ireland to better serve our clients through an expanding and forward thinking partnership. We are enthused by COBRA’s vision and are looking forward to implementing the Group’s strategy in this region and beyond.”
Enquiries:
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COBRA Holdings Limited
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Tel: 020 7204 8852
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Steve Burrows, Chief Executive
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Fairfax I.S. PLC
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Tel: 020 7598 5368
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Paul Richards / Ewan Leggat
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Redleaf Communications
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Tel: 020 7822 0200
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Emma Kane / Samantha Robbins / Adam Leviton
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Email: sr@redleafpr.com
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Dawnay, Day Corporate Finance Ltd
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Tel: 020 7509 4570
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Notes to Editors
About COBRA Holdings PLC
The Group was formed in 2006 through the amalgamation of six separate companies under a single parent company, COBRA Holdings PLC, creating a business capable of providing a wide range of services in five distinct areas of the insurance market.
It has one of the fastest growing UK networks, with in excess of 100 independent insurance brokers. In addition, it offers retail insurance, wholesale Lloyds facilities, underwriting capacity and financial services. The Group has expanded rapidly over the last year due to both organic and acquisition growth.