The Ardonagh Group has completed its planned £165 million acquisition of UK personal lines broker Swinton Group Limited from Covéa Group.
Ardonagh revealed that it has now received regulatory approval for the deal, which it originally announced in September 2018.
The broker funded the acquisition with committed financing from its existing bank group, along with cash from certain Swinton assets.
Swinton focuses on motor and home insurance, including specialist lines such as caravan, motorhome and motorbike, and reported turnover of £168 million in 2017, as well as more than one million customers and 1.6 million live policies.
The company currently employs more than 1,550 people and has invested £45 million into digital capabilities over the last two years to respond to changing customer buying preferences.
As part of the transaction, Ardonagh also said that it had exchanged its US $235 million 8.625% senior secured temporary notes due 2023 for an equivalent amount of new notes due the same year.
These new notes were issued pursuant to the Group’s existing senior secured notes indenture dated 20 June 2017.
“A portion of the Temporary Notes proceeds, originally deposited in escrow pending regulatory approval of the Swinton acquisition and, separately, the acquisition of Minton House Group Limited, Health and Protection Solutions Limited and Professional Fee Protection Limited, as announced on 29 October 2018, were released in order to complete the Swinton Acquisition,” Ardonagh explained.
The remaining escrowed proceeds will be released upon the completion of the acquisition of Minton House Group Limited, Health and Protection Solutions Limited and Professional Fee Protection Limited.