Epiris, managers of Electra, have announced the sale of leading insurance claims service provider Davies Group to HGGC, the US based private equity firm, for GBP90 million.
Electra has received proceeds of GBP45 million from the sale, an uplift of GBP2 million or 4% on the valuation of its investment in Davies at 30 September 2016, equivalent to an increase in NAV per share of 4p.
Davies is a multi-award winning insurance claims service provider, delivering third-party administration and specialist technical services to insurance intermediaries, the Lloyd’s market, UK and global insurers and large self-insured businesses. The company manages more than 170,000 claims each year, handling in excess of GBP1.2 billion of annual claim cost across property, casualty, motor and niche insurance classes. In addition to its administration services, it provides integrated technical services including loss adjusting, surveying, fraud detection, and supply chain solutions.
Epiris led the GBP61 million acquisition of Davies in 2011. Since then Epiris has delivered its transformation strategy through management change, M&A and operational improvement. The business is now significantly larger and much better positioned than at entry.
Alex Fortescue, Managing Partner at Epiris, said: “We are delighted to have brought the investment in Davies to a successful conclusion. Dan and his team have done a tremendous job in transforming the business into a growing and successful third party administration.”
Dan Saulter, CEO of Davies Group, said: “It has been great to work with Epiris to develop and transform the Davies business. It has been hard work, but I am very proud of the business that we have created with Epiris and look forward to working with HGGC to take it to the next stage.”
ELTA : Electra sells Davies Group