The broker also announced £300m in finance for its acquisition pipeline
Ardonagh is topping up its debt in a major boost to its M&A warchest, it announced today.
The broking group’s debt previously stood at £1.1bn - but that is now topped up to £1.875bn, Ardonagh announced today.
Ardonagh said when the deal completes, it will mean it has:
- Completed acquisitions of Irish broker Arachas, motorbike broker Bennetts and broking network giant Bravo Group.
- Replaced existing £1.1bn bond debt, with a new £1.6bn private lending facility led by Ares, KKR and Caisse de dépôt et placement du Québec.
- Been given equity value of £1.6bn by its stakeholders
- Boosted its M&A warchest with a new £300m credit facility
- Bennetts, Bravo and Arachas will be paid off with the Ares-led debt facility and a new bond issuance launched today
Ardonagh announced it was buying motorbike broker Bennetts in February this year.
Commenting on the developments, Ardonagh chief executive David Ross said: “Today’s announcements represent an important step in the continued development of Ardonagh’s multi-product and multi-channel platform through sustained focus on organic growth and selective acquisition strategy, as we continue in our ambition to excel as the largest independent insurance broker in the United Kingdom and amongst the largest globally.
”Bravo and Arachas are two strong, resilient businesses which are highly complementary to the Ardonagh platform and will allow us to further increase our diversification across products, channels, carriers, income producers.
”Our highly diversified business has enabled us to remain resilient as we navigate the recent challenges presented by the Covid-19 pandemic.”