The transaction is topic to receipt of customary regulatory approvals and is anticipated to shut through the second quarter of 2021.
Davies, which delivers skilled services and expertise options throughout the danger and insurance worth chain, helps insurers, reinsurers and brokers in assessing and managing claims. The enterprise employs greater than 4,000 individuals, supporting about 800 purchasers worldwide and has lately undergone international enlargement into new markets together with Bermuda, Canada and the US. Through a mixture of natural development and strategic acquisitions, the agency has elevated its annual proforma revenues six-fold over the past 4 years, to over £350 million.
Commenting on the deal, accomplice at BC Partners Cédric Dubourdieu stated the agency had been watching Davies’s development over the previous couple of years with curiosity and believes the enterprise has severe potential. He referenced Davies’s profitable geographical enlargement and its completion of over 30 acquisitions which had helped diversify its service providing and cement its popularity within the sector.
“We’re very excited concerning the alternative to work with Dan [Saulter, group CEO of Davies] and the broader Davies group to construct on this momentum,” he stated, “utilizing our international community and sector experience to assist additional development by means of technology-enabled transformation and additional penetration into the US and European markets.”
Meanwhile, Saulter stated the Davies group is worked up to welcome BC Partners as a majority investor because the group embarks on its subsequent part of worldwide development and expertise funding. He stated he’s happy that HGGC and AIMCo will proceed to put money into the enterprise alongside its new accomplice.
“I’m pleased with what the group has achieved,” he stated, “and this transaction will imply that our worker possession programme, the Davies Incentive Plan, can pay out to eligible colleagues for a second time, reflecting the massive function they play day-after-day in serving our 800+ insurance and extremely regulated purchasers all over the world.”
James Ridout, director of AIMCo stated it had been nice to accomplice with Saulter and the Davies group since 2019 and that, as long-term traders on behalf of its purchasers, AIMCo was delighted to proceed backing the enterprise and appears ahead to supporting its subsequent development part.
John Block, accomplice of HGGC added: “The superb development Davies has achieved since our preliminary funding in 2017 has been inspiring to see. Dan and the management group’s dedication to sustaining a tradition of accountability and transparency with a give attention to worth creation supplies an ideal basis for continuous enterprise enlargement. Following our partnership mannequin, we stay up for an ongoing function in Davies’s success alongside BC Partners and AIMCo.”
The BC Funds had been suggested by Waller Helms Advisors and Macquarie Capital, Linklaters LLP and PwC. Management had been suggested by Liberty Corporate Finance and Osborne Clarke. HGGC was suggested by Kirkland & Ellis and AIMCo was suggested by Allen & Overy.
