Thu, 20 Nov 2014 | BUSINESS SALE
Insurance broker Towergate is seriously considering selling up amidst spiralling debts and an overstretched credit facility.
Forecasts show it is presently on course to soon breach its banking covenants, and is in talks with Lloyds and its other banks to extend a £85 million credit arrangement.
Evercore and Rothschild have been brought in to manage “early stage” deal interest for the business as a whole, other ideas include identifying non-core aspects of the business to be jettisoned.
It recorded losses of £112.7 million for the nine months to the end of September compared to £19.1 million the previous year.
Since its beginnings in 1997 Towergate has grown via buying 175 smaller insurers. The strategy has, however, also led to the growth of its debts; £831 million as of the close of September.
Several names of potential buyers have been doing the rounds in the City of London’s rumour mill, with Australian insurer QBE named, alongside Marsh, Willis and Aon. Towergate’s founder Peter Cullum could set up a management buy out for the 43 per cent that private equity investor Advent holds, it has been suggested.
A bond trader told the Times: “It looks like a hard sell to me. This business really needs a full debt restructuring.”
_______________________________________________________________
Related information:
Acquisition finance
SMEs not concerned by potential higher interest rates
Offered for sale is a highly regarded firm of commercial building consultants and surveyors, dedicated to providing expert advice and guidance in order to maximise the value of clients’ building assets.
The company designs, manufactures, installs, and maintains bespoke dust control equipment across the UK. Priding itself on its extensive in-house knowledge, the company provides a full range of filters, fans, and ducting, as well as offering annual C...
This business is a true powerhouse, offering customers everything they need to achieve their desired spaces in one convenient place. Whether they’re undertaking a full-scale renovation or searching for that perfect finishing touch, the solutions offe...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.