We’re going to use the money for growth not to prop us up, says executive chairman
Exclusive analysis: International ambitions
Lockton International will use a £15m cash injection from its shareholders to grow the business, Julian James, its chief executive, said this week.
James confirmed that Lockton was set to receive the £15m following talks late last year with its US parent company and shareholders, the Lockton family and Stone Point Capital.
He denied that the cash injection was a response to financial difficulties and insisted the money would be used for growth.
Market sources speculated that Lockton could bring in teams from rival companies in the UK and overseas. The firm has come under pressure from its parent company to expand quickly, and will use this capital to do so.
Lockton has told the FSA and external debt provider JP Morgan of the £15m plan. It is now hammering out the details with lawyers.
James said: “Our shareholders have injected further capital of £15m into Lockton International. The plan is to use the money for international investment and drive revenue and profit growth further.”
The shareholders acquired Lockton International for £67m from Alexander Forbes in 2006. Since then, 603 staff have left the business and 242 have arrived. Lockton is run by David Lockton, chairman, John Lumelleau, president and chief executive, Mike Hammond, chairman of Lockton International, and Mike Frost, chief operating officer.