UK-based Darwin Private Equity has acquired The A & A Group (Allen & Allen) and Hyperformance together the A&A Group in a management buyout (MBO).

The A&A Group is a UK independent insurance intermediary which has more than 500 staff and achieved Gross Written Premium of c. GBP140m in 2011.

Upon completion of the transaction, Ian Chippendale will join as chairman who served as CEO of Direct Line and Privilege Insurance, as well as RBS Insurance chairman.

The MBO is being funded by A&A Group’s CEO Tony Allen and the rest of the senior management team, while acquisition finance for the transaction was provided by The Royal Bank of Scotland.

Darwin Private Equity Partner Jonathan Kaye said that The A&A Group has a highly experienced management team and is operating in an attractive segment of the insurance market which will help them extend their market position in non-standard motor insurance.

The transaction is subject to change of control approval from the Financial Services Authority.

Deloitte Corporate Finance and Slaughter & May were advisers to the A&A Group during acquisition.