Sale of Lumley Letsure

Resolution Partners advised the shareholders of Lumley Holdings in connection with its £12m sale to Erinaceous Group Plc. Lumley Holdings’ principal subsidiary, Lumley Letsure is a leading independent insurance intermediary with GWP of £16m. It specialises in the distribution of commercial and residential landlords’ buildings and contents insurance; tenants’ contents and rent guarantee insurance; and tenant referencing services through a network of letting agents, insurance brokers and direct.

Other notable features of the transaction were as follows:

• The sale strategy entailed a rifle shot approach;
• The purchaser took over two defined benefit pension schemes at the value of their FRS17 deficit;
• The entire consideration was paid in cash at completion; and
• The vendors’ warranties and indemnities reflected their trustee status