Business ‘does not align with our core strategic focus’, says Towergate chairman
Towergate and JLT have confirmed that JLT is buying Hayward Aviation from Towergate for £27m.
The sale is part of Towergate’s plan to sell non-core units to stave off a looming cash shortage.
The troubled broking group’s interim executive chairman Alastair Lyons said: “Hayward is a strong international business, with well-established specialities across the aviation sector.
“This, however, does not align with our core strategic focus on SME and personal lines and the UK market. We are therefore pleased to see Hayward’s move to JLT and wish them well with the next phase of their growth strategy as part of a leading international broking business which has aviation as a core specialty.”
But for JLT, aviation is a core business.
In 2013 Hayward Aviation generated £10m of revenues and profit before tax of £3m. JLT will finance the purchase from cash resources and debt.
JLT expects the acquisition to start contributing to profits in the first full year following completion of the deal.
JLT said it will retain the Hayward Aviation brand.
JLT group chief executive Dominic Burke said: “This acquisition provides a unique opportunity to bring together one of the best general aviation brokers in the world with JLT’s market-leading aerospace capabilities and international network to create a strong platform for growth in one of our core areas of specialisation. We have long admired Hayward Aviation and are delighted to welcome the team and their clients to JLT.”
Hayward Aviation chief executive Guy Holland-Bosworth added: “JLT offers our clients and our people a fantastic opportunity to join a company that shares our specialty-focused strategy and our client-first and entrepreneurial culture. As part of JLT, we are now able to fulfil our ambition of building a truly global General Aviation business.”