Bain Capital to acquire UK’s Esure for £1.2bn

Bain Capital, the private equity firm, is to acquire UK-based insurance firm Esure in a transaction worth £1.2bn, it was announced at the end of last week.

The deal gave Esure a 37% premium on the share price on Friday.

Esure chairman Sir Peter Wood said: “Since its IPO in 2013, esure has grown to nearly 2.5 million in-force policies, delivered more than £800m of annual gross written premiums, and returned just under £300m to shareholders in dividends as well as the considerable value delivered to shareholders through the demerger of GoCompare.

“As a private company and with Bain Capital’s backing, esure will be able to invest behind the innovation required to fully realise the opportunities in this market.”

In addition Luca Bassi, managing director at Bain Capital Europe, said: “Esure’s nimble and focused approach, lean structure and strong use of technology positions it to grow in a changing insurance industry: insurance companies with smarter operations and better technology are best placed to meet customers’ needs at competitive prices whilst delivering profitable growth.”

Wood, who, according to Reuters, is set to earn £371m from the deal, will continue as chairman once the acquisition is completed.

The acquisition is subject to regulatory approval. Deutsche Bank advised the Esure on the deal, and Cenkos, Goldman Sachs International, and Dean Street were the advisers for Bain Capital.

Christopher Copper-Ind
Christopher Copper-Ind is Publisher and Editor of International Investment. His previous publishing experience focused largely on the Middle East and emerging markets, and he was Editorial Director of The Business Year, based in Istanbul, for three years before moving back to London in 2017. He is the author of How to Negotiate, to be published by Macmillan in 2019.

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