Clegg Gifford’s acquisition of broker Westminster leaves former owner Tradex as insurer only
Lloyd’s motor trade broker Clegg Gifford has acquired Westminster, the direct broking business of its sister company, Tradex Insurance Group.
The new combined broking entity will control gross written premiums of almost £70 million.
The acquisition was mainly funded by a £11 million senior debt facility from bank Investec’s growth and acquisition finance team.
Tradex and Clegg Gifford director Toby Clegg said: “This gives us a national footprint and distribution network throughout the country.
“We hope to expand the product range offered by the 45 Westminster agents, who are all excited to be part of a broker.”
He added the acquisition left Tradex as a pure underwriting company, to bolster its capital position ahead of the Solvency II regulations on capital requirements.
Investec Growth and Acquisition Finance director James Stirling said the bank was committed to expanding its coverage of the sector.
He added: “We are open to discussions with management teams considering similar transformational deals.
“With the backdrop of Solvency II, Investec believes there are more opportunities ahead for businesses looking to grow or consolidate.”