Jelf moves for TIP in £12m deal
CONSULTANCY Jelf has agreed to buy Yorkshire-headquartered The Insurance Partnership for £12m.
The price paid could increase by a further £3.5m depending on future performance.
The £12m consideration will be met by £8.9m of cash and £3.1m in new Jelf shares to be issued on completion of the deal to key senior management and sales staff at TIP.
TIP is a regional general insurance broker with offices in Hull, Leeds, York and Wolverhampton.
Jelf said the deal was in line with its strategy of growth through organic initiatives and selected acquisitions.
Alex Alway, chief executive of Jelf, said: “I am pleased that Rob Worrell has decided that being part of Jelf will enable him and his team to realise their ambitious plans for growth. We feel privileged to welcome Rob and his team to the group.
“Together we will be an even stronger force in insurance broking. The acquisition is significant for Jelf and we are confident that this will be an earnings enhancing deal for Jelf.”
Robert Worrell, managing director of TIP, added: “TIP was never a business for sale but TIP and Jelf are such a perfect fit. It was that simple – shared vision, values and culture with a complete passion for client service and committed delivery.
“Our combined sum of the parts will create a market leading organisation. I am so excited at the prospect of working closely with the executive team that I already knew well and trust completely.”
In the year ended June 30 2012, TIP achieved adjusted revenue of £8.8m, adjusted EBITDA of £1.3m, and adjusted profit before tax of £640,000.
