- PSC Insurance Group (PSC) is set to acquire two U.K.-based commercial broking businesses for a combined total of £36.5 million (roughly A$65.15 million)
- PSC will acquire Trust Insurance Services for £15.5 million (roughly A$27.6 million)
- Trust Insurance Services is an independent commercial insurance broker that specialises in the arboriculture, forestry and landscaping industries
- The second company is Leicester-based Abaco Insurance Brokers for £21 million (roughly A$37.4 million)
- The acquisitions are expected to generate a combined annual earnings before interest, taxes, depreciation and amortisation of around £4 million (roughly A$7.1 million)
- It also aligns with PSC’s strategy of building its presence in the commercial broking market outside of London
- PSC ended the day trading 2.13 per cent higher at $3.35
PSC Insurance Group (PSC) is set to acquire two U.K.-based commercial broking businesses for a combined total of £36.5 million (roughly A$65.15 million).
The acquisitions are expected to generate a combined incremental annual earnings before interest, taxes, depreciation and amortisation of around £4 million (roughly A$7.1 million) for the group.
Trust Insurance Services
Broken down, the company will acquire 100 per cent of the share capital of Trust Insurance Services for a base consideration of roughly £15.5 million (roughly A$27.6 million) excluding net assets.
Trust Insurance Services is an independent commercial insurance broker that focuses on the arboriculture, forestry and landscaping industries.
PSC believes Trust’s nearly 30 years’ experience and strong revenue and earnings growth will help drive its U.K. direct commercial broking strategy.
“We are very pleased to welcome Geoff and his team at Trust. They have built a wonderful business over the years and PSC has seen this first hand, having worked with them for many years,” PSC Managing Director Tony Robinson said.
Abaco Insurance Brokers
PSC Insurance Group will acquire 100 per cent of the share capital of Abaco Insurance Brokers for a base consideration of £21 million (roughly A$37.4 million) excluding net assets.
Abaco is a Leicester-based independent insurance broker with an increasing focus on servicing the property management industry and other niche offerings.
The business’ management team are highly experienced with strong potential for growth.
Additionally, the acquisition will provide PSC with access to multiple wholesale business and position it as a dominant broker within Leicester due to it already owning the Leicester-based Turner Insurances Services business.
“We are also very pleased to welcome John and his team at Abaco into the PSC Group. Their business has grown strongly over recent years and their expertise will greatly add to the group,” Tony said.
After these acquisitions, the billion-dollar company will have four U.K. direct commercial broking operations under its belt with a combined revenue of around £12 million (roughly A$21.4 million).
PSC ended the day trading 2.13 per cent higher at $3.35 at market close.