Charles Taylor PLC Acquisition (6629P)
September 04 2017 - 1:00AM
UK Regulatory
TIDMCTR
RNS Number : 6629P
Charles Taylor PLC
04 September 2017
Date: 4 September 2017
On behalf of: Charles Taylor plc ("Charles Taylor", the "Group"
or the "Company")
Embargoed until: 0700hrs
Charles Taylor plc
Acquisition of Metro Risk Management LLC, a US workers'
compensation insurance claims administrator
Charles Taylor plc announces today that its subsidiary, Charles
Taylor General Agency, Inc. doing business as Charles Taylor TPA
("CTTPA"), has agreed to acquire Metro Risk Management LLC ("MRM")
a West Coast USA insurance claims third party administrator ("TPA")
for a maximum consideration of US$1.8 million. MRM specialises in
managing workers' compensation claims in California.
Charles Taylor will pay US$1.3 million in cash on completion,
expected to be 5 September, to acquire 100% of the equity of MRM
from Nautilus International Holding Corporation ("Nautilus"). An
additional payment of up to US$0.5 million in deferred
consideration will be paid on the third anniversary of the
transaction, subject to achieving certain performance targets.
The unaudited gross assets of MRM on closing are expected to be
US$0.4 million compared to audited gross assets of US$9.8
million(1) , as at 31 December 2016. MRM achieved revenue of US$3.0
million and profit before tax of US$0.8 million in the year to 31
December 2016. Year to date 2017 performance is behind 2016 due to
lower claims volumes. Following completion, MRM will be
consolidated into Charles Taylor's accounts for the remainder of
the year ending 31 December 2017 and after transaction and
integration related costs, is not expected to make a material
contribution to earnings for that period. The acquisition is
expected to contribute modestly to revenue, profits and earnings in
the year ending 31 December 2018 and in subsequent years.
Background to the acquisition
The transaction will enable Charles Taylor to support the growth
of its US TPA business, CTTPA. Growing the Group's capabilities in
providing outsourced insurance services, such as TPA services, is
one of Charles Taylor's four key strategic growth initiatives.
MRM provides workers' compensation claims administration
services to clients with employees covered by the California State
Act and the US Longshore and Harbor Workers' Compensation Act
(Longshore Act). Major clients include insurers, self-insurers, the
California Self Insurers' Security Fund and others. MRM's largest
client, has recently agreed a three-year contract renewal with MRM
for workers' compensation claims administration.
MRM's General Manager and staff of 13 have joined Charles
Taylor, adding further to the business' highly experienced workers'
compensation specialists and expanding the Group's US
capabilities.
David Marock, Group Chief Executive Officer, Charles Taylor
said:
"I am delighted to welcome our new colleagues from MRM to
Charles Taylor. This acquisition reflects our continued commitment
to grow our TPA business in the USA and globally, to expand our
technical expertise internationally and to strengthen our
relationships with high-quality clients."
(1) The difference between the gross assets at the date of
closing and 31 December 2016 is a result of pre completion
distribution of retained earnings to Nautilus.
-ends-
For further information:
Charles Taylor plc
David Marock, Group Chief
Executive Officer
Mike Lord, Group Communications Via Redleaf Polhill
Director
Redleaf Communications ct@redleafpr.com
Charlie Geller
Ian Silvera 020 7382 4730
Notes to editors
Charles Taylor plc is a leading provider of professional
services to clients across the global insurance market. The Group
has been providing services since 1884 and today employs over 2,000
staff in 73 offices spread across 29 countries in the UK, the
Americas, Asia Pacific, Europe, the Middle East and Africa.
The Group offers services, principally on a fee-based model and
operates through three businesses - Management, Adjusting and
Insurance Support Services. Charles Taylor also owns insurers,
creating value through select acquisitions and operational
efficiency.
Further information is available at www.ctplc.com
Statements made in this announcement that look forward in time
or that express management's beliefs, expectations or estimates
regarding future occurrences are "forward-looking statements"
within the meaning of the United States federal securities laws.
These forward-looking statements reflect the Group's current
expectations concerning future events and actual results may differ
materially from current expectations or historical results.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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