BMS Group, an independent specialist insurance and reinsurance broker, has entered into an agreement to acquire David Roberts & Partners (DR&P), a UK-based insurance broker, from European mid-market private equity firm, Inflexion.
Founded in 1977, DR&P has a presence across the UK and Europe, handling more than £620 million in gross written premiums (GWP).
Inflexion initially invested in DR&P in 2021 and has since supported its growth with another investment in 2023.
The firm’s exit from DR&P follows its previous successful investment in Bollington Wilson which was sold to Arthur J. Gallagher in 2021 following a transformational merger, and five subsequent acquisitions which delivered EBITDA growth of 133%.
With Inflexion’s support, the management successfully pursued a M&A strategy to build a network of strategically aligned businesses in the regional insurance broking market, and has benefitted from significant investment in its technology infrastructure.
DR&P has an organic growth rate of 23%, combined with its approach to M&A with 14 acquisitions completed in the last three years. The firm has generated a tenfold increase in EBITDA during Inflexion’s investment, and has an established 95% client retention, with active clients in 46 countries worldwide, despite being UK only focussed when Inflexion invested.
It’s understood that DR&P chief executive, John Page, and managing director, Simon Bland, will continue in their roles, with John reporting to Nick Cook, CEO of BMS Group, and joining the group executive committee.
The transaction marks BMS’s largest acquisition to date and creates a business managing over £8 billion of gross written premiums.
“This landmark transaction is a significant strategic step for BMS and a very proud moment in our company’s evolution. By aligning these two businesses, both of which have market-leading organic growth and ambitious expansion plans, we create a formidable force. We are delighted that DR&P selected BMS as their new home amidst considerable global interest. Our shared values, such as a commitment to people development, a growth mindset, employee ownership, empowerment, and a determination to maintain independence were pivotal in the decision,” said Cook.
Page commented, “We have been exploring ways of maximising our strength in specialty retail, London (re)insurance and MGA markets for some time and are delighted to have found in BMS a perfect opportunity to join forces with a highly successful, global business with a deep commitment to independent broking. BMS’ commitment to exceptional client outcomes aligns well with our own. We have countless opportunities ahead of us and I’m hugely excited about the future for our combined business.”
Malcolm Coffin, Partner and Head of Inflexion’s Enterprise Fund, commented, “Our partnership with DR&P has been both highly productive and richly rewarding for all involved, a testimony to the tremendous skill and energy of such a talented management team in delivering industry-leading organic performance alongside thoughtful and impressive acquisitive led growth. It also marks Inflexion’s second highly successful investment in the sector. We would like to thank the entire team for their hard work and wish them all the best for the future.”
“We are proud of what has been achieved with the support of Inflexion over the past three years. Their investment has allowed us to build a market-leading business in the UK insurance market. We believe there are significant opportunities for further growth ahead of us,” concluded Page.
