Kieran Rigby to lead MBO
See analysis: Who will back Gab's MBO?
The directors of GAB Robins are close to completing a management buy-out of its UK arm.
Kieran Rigby, the loss adjuster’s chief executive, is leading the buy-out. The business is currently owned by Brera Capital, a private equity firm.
As revealed by insurancetimes.co.uk on Monday, the deal would effectively split GAB Robins in three.
The company’s international operations are likely be sold to private equity giant Stone Point, which also owns a controlling stake in rival loss adjuster Cunningham Lindsey.
Brera Capital is expected to keep the North American business.
“There is a real appetite to maintain the UK business, as they have already turned it around,” a source said.
“The feeling is that as an individual business in the UK, it is good for competition; it keeps options available.
“It gives you a lot more control if you are a management-owned business. You do not have an owner to dictate to you; you have more control over how the business will grow.”
Brera Capital has been searching for a buyer after being put in “orderly liquidation” in the summer.
GAB Robins, which is in good financial shape, has become one of Brera’s most highly prized assets. It is one of the world’s largest loss adjusters with offices in 58 countries and a workforce of 3,300 people.
In its last published accounts, GAB Robins posted a pre-tax profit of £2.72m for 2007, against a loss of £426,000 in 2006.
The loss adjuster also reduced its pension deficit from £34m in 2006 to £25.6m in 2007. It is not yet clear what role the deficit will play in the buy-out.
Brera Capital, which is based in New York, bought a 90% stake in GAB Robins from SGS Société Générale de Surveillance Holding in 1999.