London-based private equity firm Apax Partners is reportedly exploring alternatives for its asset, PIB Group, a British insurance brokerage.
Reuters reports that according to sources close to the developments, the potential strategies could include the divestiture of the company. These individuals, who requested anonymity, indicated that Apax is likely to engage a financial consultant later this year to assess interest from potential purchasers.
The valuation of PIB Group could surpass £4 billion, given its projected annual earnings before interest, taxes, depreciation, and amortisation (EBITDA) of approximately £250 million ($315.7 million). This assessment stems from one of the informed sources from the report.
Apax Partners opted not to provide comments. Similarly, PIB Group has not issued a response to requests for commentary from Reuters.
The insurance brokerage sector has seen a surge of interest from private equity investors, driven by the industry's stable cash flows and the opportunities for expansion through mergers and acquisitions.
Read more: What is an insurance brokerage?
Other notable transactions include KKR's acquisition of French insurance broker April Group from CVC for €2.3 billion in 2022 and Permira's purchase of GGW from Hg for an undisclosed amount.
PIB Group, known for its focus on commercial and non-standard personal lines, became a part of Apax Partners' portfolio in 2021 following its acquisition from Carlyle Group. Despite the potential sale, Carlyle and the management team of PIB Group continue to hold minority stakes in the company.
Earlier this year, PIB Group made major expansion strides with a triple acquisition in Spain. Joining its ranks are Aguirre Vila-Coro Correduría Seguros (AVC), Grupo IDDEAS, and Javier Sánchez Consultores (JSC).
“New colleagues and capabilities bolster our service provision and are an essential part of our growth strategy. We are confident that 2024 will see the group’s continued expansion across Europe,” PIB Group Europe CEO Onno Jansen said.
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