Partnership structure dissolved as loss adjuster completes management buy-out
The UK’s fourth largest loss adjuster, Davies Group, is completing a management buy-out in a deal believed to be worth about £25m.
Venture capitalist LDC has backed the deal, which will see the firm’s partnership structure dissolved this week.
As part of the buy-out, senior partner David Ede, who has been with Davies for 39 years, will leave the company, though not immediately.
Partner Mark Chapman, who has been with the company since 1973, will become chief executive and the management board will be made up of former partners.
Sources say the MBO, predicted by Insurance Times last May, was necessary for the modernisation of the firm, which specialises in construction, liability and engineering claims. Davies has also launched a special and complex loss unit.
Last year the adjuster poached senior members from rival firms, Cunningham Lindsey and Crawford & Company.
The deal is the latest in a series of MBOs in the loss adjusting sector. In 2006, senior management at specialist liability adjuster Garwyn completed a £20m MBO from insurer QBE.