The Bradstock Group is set to sell a number of its retail and specialist broking businesses to the UK subsidiary of the Alexander Forbes group for £12.7m.
The insurance businesses being acquired by risk services group Alexander Forbes are Bradstock's UK network of ten retail broking offices, serving both corporate and individual clients, and its international events insurer Insurex Expo-sure.
These and other businesses being sold to Alexander Forbes generated a revenue of more than £18m last year.
However, the past liabilities of the sold businesses are being retained by Bradstock under the deal as are any liabilities incurred from the mis-selling of pensions.
Bradstock has decided to retain its two insurance businesses of Hayward Till and Jensen Dickens.
Chairman and chief executive of Alexander Forbes Risk Services, John Percy-Davis, said: “The acquired business units strengthen our presence in the UK and enable us to market complementary products and services to our enlarged client base.”
He added that he has worked closely with Bradstock to identify specific opportunities to grow the acquired businesses.
Alexander Forbes added that the acquisitions are a further step in its strategy of buying complementary financial and risk services firms outside of its home South African market.
The Bradstock businesses it is set to acquire will enable it to consolidate its niche positions in the insolvency, professional indemnity and specialist event insurance markets.
Alexander Forbes is listed on the Johannesburg stock market and has a capitalisation of £500m.
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