Culver Holdings, a financial services company, has acquired 81% of the issued share capital of aviation specialist broker, AMS Corporate Risks, and the whole of the issued share capital of Lloyd's broker, LPH Pitman.
The aggregate initial consideration for the acquisitions is GBP134,346 paid in cash at completion and up to a further GBP38,443 payable within six weeks, both funded from a new bank borrowing facility. Deferred consideration of up to GBP12,900 will be payable following the first anniversary of completion, dependent on the continuation of terms of business between LPH and certain underwriters.
Culver Group has reported that the acquisitions will give it a new niche area of activity and also a direct access to the Lloyd’s market which should enable the group to improve its service to customers and the margin it earns as well as facilitating the group’s entering other specialist niche areas. The shares in AMS have been acquired from Aerospace Management Capital and the share capital of LPH has been acquired from LPH Group Limited
Both companies will operate under the direction of Culver’s insurance broking subsidiary Culver Insurance Brokers. The existing directors of AMS and LPH, except Mr Leggett, will continue as executives of the businesses and will continue to own the remaining 19% of the issued share capital of AMS. David Sullivan CEO of Culver’s insurance broking subsidiary and Robert Lewis will be appointed to the board alongside them. Mr Leggett has entered into a two year consultancy arrangement with AMS.
Mr Sullivan, said: This is a major strategic development for Culver Insurance Brokers, taking us from being another substantial regional broker to being a fully fledged Lloyd’s broker. This should allow us to reduce our cost of access to the Lloyd’s market for our traditional business and also broaden our product and service offering and our geographical reach.