B.P. Marsh & Partners Plc has announced that investee firm, XPT Group LLC, has acquired 100% of LP Risk, Inc, the Houston, Texas-based managing general agency (MGA) and surplus lines brokerage.
As well as its headquarters in Houston, LP Risk has additional offices in Dallas and San Antonio (Texas). The MGA and broker was founded in 1991 as MD Jensvold & Company, before being acquired by Landon Parnell in 2013 and rebranded to LP Risk in January of 2018.
XPT, a U.S. domiciled specialty lines insurance distribution company, will leverage its previously announced debt facility with Madison Capital Funding LLC to acquire 100% of LP Risk. As part of the arrangement, Parnell will become a shareholder of XPT, with an approximate holding of 6%, which forms part of the purchase price. Once the deal completes, B.P. Marsh’s shareholding in XPT will be revised to 29.9%.
B.P. Marsh was a founding investor in XPT in 2017, and since then, the company has grown significantly through value accretive acquisitions adopting its partnership approach.
LP Risk has a specialist focus on transportation, hospitality, contractors, marine, energy/oil & gas and manufacturing. The company’s 51 employees handle more than 4,000 accounts each year on behalf of 350 retail agents and brokers across 18 states.
Upon closing of the transaction, Parnell will remain with the company as the President of LP Risk and will also become a member of XPT’s Executive Committee.
XPT expects that the acquisition of LP Risk will strengthen its presence within existing markets and add an experienced professional to its Executive Committee. From the offset, XPT is forecasting gross written premiums (GWP) in excess of $300 million and EBITDA of roughly $7 million inclusive of this acquisition to December 2020.
Commenting on the recent acquisition, the Group’s Chief Investment Officer (CIO) and Nominee Director on the Board of XPT, Daniel Topping, said: “LP Risk is a tremendous addition to XPT. Landon Parnell has developed a first-rate speciality insurance business which will further bolster XPT’s position. It is a testament to what Tom Ruggieri and his team have achieved so far, that they have been able attract Landon Parnell and his business. We at B. P. Marsh look forward to continuing to work with XPT to help them achieve all their targets.”
XPT’s Chief Executive Officer (CEO), Thomas Ruggieri, commented: “Landon brings with him an impressive track record of success and knowledge that will strengthen our executive committee. We are thrilled to have him and his team join the XPT family.”
President of LP Risk, Parnell, who is also set to take on a new role leading XPT’s National Property and Casualty Brokerage unit, added: “LP Risk has spent many years developing the technical knowledge of our underwriters and the market relationships of our brokers, while making service our main priority.
“XPT’s commitment to launch innovative products while using a modern platform to access new markets will allow us to raise our service level and realize lasting growth.”
