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

Drakefield__april_2007_v2Resolution Partners advised the shareholders of Drakefield in connection with its sale to AA Insurance Services. Drakefield is a leading independent provider of branded online travel insurance under the Go Travel Insurance and 1 Stop Travel Insurance brands backed by a call centre in Basildon. In addition it arranges and administers travel insurance policies for Admiral, Elephant.co.uk, Diamond and Bell. Resolution Partners identified the transaction opportunity, introduced the parties, and negotiated the terms of the transaction. Notable features of the transaction were as follows:

  • Transaction effected via a ‘Rifle-shot’ approach – despite expected high level of demand for the business from both brokers, MGAs and insurers;
  • It involved the combination of Drakefield’s business with the AA’s travel insurance business, thereby creating a business with c. £15m GWP with significant cross-sell opportunities;
  • It enabled Drakefield Management to realise some cash at Completion and provided a cash exit for the private equity investor; and
  • The enlarged business is managed by the Drakefield Management team, all of whom retain a direct equity shareholding in it.

fyfe_2008_v2Fyfe Group was a high margin specialist broker operating in a niche segment of the motor trade business. The principal shareholder, Mike Slack, was a non-executive director of the FSA. The transaction involved the sale of the business to Royal & Sun Alliance Insurance plc.

Key features of the transaction:

  • Transaction effected via a ‘Rifle-shot’ approach – despite expected high level of demand for the business from both brokers, MGAs and insurers;
  • Close to 100% of the consideration received in cash at completion;
  • Principal shareholder was able to step back from the business at completion and also retain control of another motor related insurance distribution business

Lycetts_2009_v2Lycetts is a leading independent commercial insurance broker specialising in farms & estates, HNW property and bloodstock insurance and financial services. Ecclesiastical Insurance Group emerged as Lycetts preferred partner after a review of Lycetts strategic options.

Key features of the transaction:

  • All shareholders were able to realise some cash at Completion;
  • Retired shareholders were able to crystallise the value of their remaining shareholdings and obtain liquidity over a fixed period;
  • Management and employee shareholders have an ongoing equity participation in the business with the ability to sell their shares at an attractive formula price over a five year period

The transaction preserves the operational independence of Lycetts and was negotiated and completed against the backdrop of extremely volatile and difficult conditions in the global financial markets.

Noble_Marine_2011_v3Noble Marine is a leading, high margin specialist intermediary / MGA operating in a very profitable niche segment of the marine sector. The transaction involved the sale of the business to Royal & Sun Alliance Insurance plc.

Key features of the transaction: