Towergate secures £200m Advent investment

Towergate this morning confirmed it has entered into a conditional agreement over a £200m investment by global private equity firm Advent International.

The Investment is conditional upon raising new debt facilities through the bank and bond markets, the company said in a statement.

Advent is acquiruing separate shareholdings in both Towergate and sister company Cullum Capital Ventures (CCV).

The completion of the investment and debt capital raising initiative is expected to be in mid-February.

Towergate chief executive Andy Homer said: “This transaction follows a strong year for Towergate despite the ongoing tough economic conditions.

"We will continue to invest across our business and maintain a strong focus on acquisitions, a strategy which has delivered significant value over the last decade.”

Earlier this month, Insurance Times revealed Advent as Towergate's private equity partner. The consolidator will have around £100m for acquisitions.

Towergate said the deal will:

• Refinance its existing debt facilities, reducing its total borrowings and establishing a long-term capital structure on more favorable terms
• Increase its funding capacity to pursue its acquisition-led growth objective
• Secure a "supportive partner with well-recognised credentials to assist in the next stage of the group’s development"

Chairman and founder Peter Cullum said: “This marks an important milestone for Towergate and I am delighted to be working alongside Advent as our new private equity partner.

"Advent's investment provides real firepower as the group reignites its acquisition programme as part of our ambitious growth strategy.”