Broker in discussions to sell wholesale, reinsurance and aviation divisions

Heath Lambert is in discussions with Cooper Gay over the sale of its wholesale division, FSJ, and other non-core elements of its business.

The move comes after months of speculation over the future of the broker, which has been linked with a number of potential buyers - most recently, RSA.

In August last year, Heath appointed specialist advisor Hawkpoint to conduct a strategic review of the business. In March, chief executive Adrian Colosso said the broker planned to move away from its London focus.

In a statement Cooper Gay said: "In line with its strategy of acquiring complementary wholesale and reinsurance businesses in the London market, Cooper Gay today confirmed it is in discussions with Heath Lambert with a view to acquiring its Aviation, Global Business Solutions, FSJ and Reinsurance divisions."

Cooper Gay’s Group Chief Executive, Toby Esser, added: "Discussions are at an early stage and any decision will be predicated on the successful completion of a formal due diligence exercise.

"However, I am excited by the additional skill-sets and geographical reach that we will be able to offer our clients, should our discussions reach a satisfactory conclusion. I am also looking forward to offering the Heath Lambert clients the excellent service standards that Cooper Gay clients currently enjoy."

FSJ is one of the largest wholesale brokers in the UK, with a brokerage of around £3.5m. Last year, it is understood to have received an approach from THB, which was subsequently rebuffed.

Heath Lambert posted pre-tax profits of £18.5m in 2007, and revenues of £113.1m. The combined brokerage of the parts of the business in which Cooper Gay is interested is in the region of £20m.