Gresham backs the management buy-out of leading insurance broker Giles

Giles poised for accelerated growth

Gresham, the UK mid market private equity specialist, today announces that it has backed Chris Giles and the management in the management buyout of Giles Insurance Brokers Limited (“Giles”), one of the UK’s fastest growing commercial insurance brokers, in a deal valued at £45m.

Giles’ strategy is to continue to build its regional network and to take a leading role in the consolidation of the fragmented commercial insurance market. Giles has an aggressive organic and acquisition led growth strategy. As part of the transaction Giles have also secured access to additional funding lines to make further acquisitions. The company aims is to double the size of the business in the next two to three years, targeting premiums of £250m. It also intends to increase its areas of specialisation which already account for 50% of turnover. Giles are aiming for an IPO within the next three years.

Giles, headquartered in Glasgow, operates through a national network of 17 branches. They are a newly accredited member of Lloyds of London and will be seeking to expand their presence in the London market through developing this relationship.

Giles has sector specialisms in the provision of commercial insurance cover for recruitment, leisure, construction, charities, PI and motor trade.

Giles recently acquired the £16.5m premium business MCIS/BJK (income of £2.5m) who specialise in the charity sector. This takes the businesses premium income up to £90m.

The company has secured the services of Jim Faulds as Non-Executive Chairman. Founder of the Faulds Group and Chairman of various companies such as Wood Mackenzie and Newhaven, Jim has been successfully involved in previous MBO transactions.

Chris Giles, Chief Executive Officers of Giles, said “We intend to rapidly build the business through a mix of organic growth and through acquisitions. Over the past few years we have invested heavily in the infrastructure of Giles and we will continue to do so. This, along with Gresham’s investment, should create the right platform and environment to attract the best people and high quality acquisitions. We are delighted to have partnered with Gresham who we believe will support us as we implement our growth strategy.”

The deal was led from Gresham’s Manchester office by Director Andy Marsh who said: “We are delighted to be backing Chris Giles and his management team to expand Giles and fulfil their ambition to create a national commercial insurance broker with market leading specialisms. We looked at a number of investment opportunities in this market and Giles emerged as the clear leader. The ability to build the business both organically and through additional acquisitions is one of the major attractions of this opportunity.”

Andy Marsh will join the board from Gresham. Howard Posner, ex MD of HBOS General Insurance business will also join the board at completion.