Jardine Lloyd Thompson Group plc (“JLT”), one of the world’s leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services, has today announced that it has agreed to acquire Hayward Aviation Limited (“Hayward Aviation”) from Towergate Insurance Ltd (“Towergate”) for a cash consideration of £27m.
Hayward Aviation is a leading international specialist aviation insurance broker that arranges insurance for regional airlines, small commercial fleets of fixed wing aircraft and helicopters, individual jets, light aircraft and helicopters owned by private clients. For the year ended 31 December 2013, the business generated revenues of £10 million and profit before tax of £3 million. The acquisition will be financed from JLT’s cash resources and debt, and is expected to be earnings accretive in the first full year following completion.
Aviation is a core specialty for JLT, which has established leading positions in the airline and space markets in the last few years. This acquisition accelerates JLT’s strategy of leveraging this success into adjacent parts of the Aerospace market, by significantly enhancing the brand, scale and capability of our General Aviation activities, where we have a growing business.
There is also an opportunity to enhance Hayward Aviation’s client offering and take its distinctive brand, know-how and client proposition into new international markets, where demand for private jets, light commercial aircraft and helicopters continues to grow in line with underlying demographic and macro-economic trends.
Commenting on the transaction, Dominic Burke, Group Chief Executive of JLT, said: “This acquisition provides a unique opportunity to bring together one of the best General Aviation brokers in the world with JLT’s market-leading Aerospace capabilities and international network to create a strong platform for growth in one of our core areas of specialisation. We have long admired Hayward Aviation and are delighted to welcome the team and their clients to JLT.”
Guy Holland-Bosworth, Chief Executive of Hayward Aviation, said: “JLT offers our clients and our people a fantastic opportunity to join a company that shares our specialty-focused strategy and our client-first and entrepreneurial culture. As part of JLT, we are now able to fulfil our ambition of building a truly global General Aviation business.”
The acquisition is subject to regulatory approvals and other formalities and is expected to complete in early 2015. Integration of the business will take place in 2015 and the Hayward Aviation brand will be retained.