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Charles Taylor to be taken over by Lovell Minnick
Posted on Friday, 20 September 2019 07:07
Lovell Minnick, via holding company Jewel Bidco, has agreed to pick up UK-based listed insurance provider Charles Taylor for GBP 261.00 million.
The private equity firm is paying GBP 3.15 per item of stock held in the target, representing a premium of 34.0 per cent to its close of GBP 2.35 on 18th September 2019, the last trading day prior to the announcement.
In addition to being higher than 39.5 per cent to the three-month volume weighted average price and 40.9 per cent to the six-month figure, the offer sent Charles Taylor’s shares up 38.7 per cent to more than the offer price at GBP 3.26 yesterday.
The company, which was advised by Rothschild on the deal, intends to recommend the bid to stockholders in a meeting to be held in November, with completion expected in the opening six months of 2020.
Chief executive David Marock noted: “I am confident that this acquisition by Lovell Minnick, a highly regarded investor with experience in our markets, will provide Charles Taylor with the opportunity to continue to deliver on its existing growth strategy.”
According to its website, the business is a leading international provider of professional services to clients in the global insurance market.
Founded in 1884, Charles Taylor has over 3,000 staff in 120 locations across 30 countries in the UK and the US, as well as other areas across Asia Pacific, Europe and the Middle East.
The news comes one week after the business announced its financial results for the six months to 30th June 2019.
Charles Taylor recorded a 14.8 per cent increase in revenue to GBP 141.70 million in the opening half of 2019, compared to GBP 123.40 million in the corresponding period of 2018.
Adjusted earnings before interest, taxes, depreciation and amortisation jumped 80.9 per cent to GBP 17.00 million in H1 2019 (H1 2018: GBP 9.40 million).
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