Towergate announces that it has entered into a conditional agreement in relation to a £200 million investment by Advent International (“Advent”), the global private equity firm (the “Investment”). As a result of the Investment, Advent will acquire separate shareholdings in each of Towergate and Cullum Capital Ventures (“CCV”).
The Investment is conditional upon raising new debt facilities through the bank and bond markets. The completion of the Investment and debt capital raising initiative (together, “the Transaction”) is expected to be in mid-February.
The benefits of the Transaction include:
– Refinancing Towergate’s existing debt facilities, reducing its total borrowings and establishing a long-term capital structure on more favorable terms
– Increasing Towergate’s funding capacity to pursue its acquisition-led growth objective which has been at the core of its strategy since establishment
– Securing a supportive partner with well-recognised credentials to assist in the next stage of the group’s development
– Providing opportunities for the group to extend its range of specialist insurance services to further improve its client proposition
These benefits will underpin Towergate’s growth strategy which has already seen it become the largest independent insurance intermediary in Europe, generating more than £2 billion of gross written premiums a year.
Andy Homer, CEO of Towergate, said:
“This transaction follows a strong year for Towergate despite the ongoing tough economic conditions. We will continue to invest across our business and maintain a strong focus on acquisitions, a strategy which has delivered significant value over the last decade.”
Peter Cullum, Chairman and Founder of Towergate, said:
“This marks an important milestone for Towergate and I am delighted to be working alongside Advent as our new private equity partner. Advent’s investment provides real firepower as the group reignites its acquisition programme as part of our ambitious growth strategy.”
Source : Towergate Press Release
