Up to 34% of BMS Group’s share capital is to be acquired by French investment company Eurazeo, which together with an investment in the re/insurance broker of up to £355 million, takes its valuation to £1.75 billion.
Eurazeo and its affiliates will join BMS alongside its existing shareholders British Columbia Investment Management Corporation (BCI), Preservation Capital Partners (PCP) and BMS’ management and employees.
Via its Mid-large buyout team and its affiliates, Eurazeo is set to invest up to £355 million in BMS Group, alongside the acquisition of up to 34% of its share capital.
Following the completion of this transaction – which is subject to obtaining relevant regulatory approvals – Eurazeo, together with BCI, become majority shareholders of the company.
According to the announcement, definitive financial information will be disclosed once the transaction has been completed.
BMS’ management team, led by chief executive officer Nick Cook, will all remain in their roles following completion of the transaction, and management and staff of BMS will remain significant shareholders in the company.
Cook commented: “At a time when the macro-economic environment is causing headwinds for some, this investment is testament to the extraordinary growth and expansion we have delivered for several years and the confidence we have in our strategy to expand as a global independent specialty insurance and reinsurance broker.
“BMS has attracted immense attention over the past few months from global investors as we looked to position the business for an exciting future. The global reach of Eurazeo will undoubtedly help us in our ongoing expansion alongside the continued support of BCI and PCP. I am delighted to welcome Eurazeo, a prestigious listed global partner.”
The London-based re/insurance broker represents Eurazeo’s latest investment in financial services, one of the investment company’s four key sectors of focus. Eurazeo, BCI and PCP will support Nick Cook, and the rest of the BMS senior management team to pursue its growth strategy.
In the period 2019 to 2022, revenues at BMS have increased from c.£100m to more than £250m. Staff numbers have risen by nearly 75% to c.900 people globally, and has made eight acquisitions over the past three years, the most recent being Eisenar in Spain.
Eurozeo’s investment, and other shareholders’, is expected to enable BMS to further expand as a global independent specialty re/insurance broker by growing its foothold internationally both organically and through an active M&A strategy.
Cook added: “With our track record of organic double-digit growth, this investment, at a market leading valuation, has created the opportunity to scale this business with increased vigour and confidence. We have countless opportunities ahead of us in our specialty and reinsurance divisions. We now have three long-term capital partners who back BMS’ strategy and vision and, crucially, its continued independence.”
Maxime de Bentzmann and Eric Sondag, Managing Directors – Mid-large buyout, said: “We have been exploring specialty insurance and reinsurance markets for some time and we are impressed by BMS’ growth trajectory over the recent years including significant expansion of its US Reinsurance business segment.
“Together with our powerful international network, we are convinced that the Group has tremendous potential across the globe both organically and through M&A”.
Dave Hong, senior managing director, Private Equity at BCI, said: “As a long-term investor, BCI is pleased to continue our significant investment in BMS, a market-leading company with a demonstrated track record of strong growth,”
“We are excited to partner with BMS management, Eurazeo, and PCP in the next phase of this journey, and to continue creating value for our pension plan and insurance fund clients.”
