Under the terms of the transaction, LMP Bidco offered to pay 315p in cash for each Charles Taylor share
Jewel Bidco (LMP Bidco), a firm formed by private equity firm Lovell Minnick Partners and its affiliates, has agreed to acquire UK-based insurance services company Charles Taylor for £261m.
Under the terms of the transaction, LMP Bidco offered to pay 315 pence in cash for each Charles Taylor share. The deal is set to take the insurance company private.
The offer represents around 34% premium to the closing price of per share of the insurance services company on 18 September 2019.
The company’s directors will recommend the proposed deal at the general meeting that is expected to be held next month. The offer will become effective if a majority of the company’s shareholders vote in its favour.
Comments on Lovell Minnick’s offer to Charles Taylor
Charles Taylor chairman Edward Creasy said: “The Charles Taylor board is confident in the quality and long term prospects of the Charles Taylor group but believes that this offer recognises these factors and represents a good opportunity for shareholders to realise value for their investment at an attractive premium.
“As a private company with Lovell Minnick’s backing, I believe Charles Taylor will continue to capitalise on opportunities in its markets and ensure the future success of Charles Taylor for employees, partners and clients.”
Charles Taylor provides management, adjusting and also insurance support services. Rothschild & Co is advising the company on the transaction.
Lovell Minnick partners Spencer Hoffman and Jason Barg said: “Charles Taylor is a high-quality business, operating in a sector Lovell Minnick has a strong track record of investing in and we believe that partnering with Lovell Minnick to pursue a shared vision to grow the platform will provide benefit to clients, employees and partners.”
The acquisition is subject to some antitrust and regulatory clearances, including the Financial Conduct Authority (FCA) approval.