Jardine Lloyd Thompson Group PLC Acquisition (3747V)
January 27 2017 - 10:03AM
UK Regulatory
TIDMJLT
RNS Number : 3747V
Jardine Lloyd Thompson Group PLC
27 January 2017
JLT acquires stake in Construction Risk Partners in the USA
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 acquired a
50.1% stake in Construction Risk Partners LLC ('CRP'), a
construction risk and surety specialty insurance broker in the
U.S., for a cash consideration of US$50m, subject to the
achievement of performance conditions in the 12 month period
following completion. The terms of the transaction allow JLT to
increase its shareholding to 100% over time.
Highly regarded in the industry, CRP counts many of North
America's largest contractors as clients and acts as the broker of
choice for over 150 construction clients.
The partnership adds scale, specialist construction capability
and market presence for JLT Specialty USA, in line with the Group's
strategy to build out its U.S. Specialty business. CRP provides JLT
with a platform to accelerate the expansion of its construction
business, adding deep capability in the substantial and growing
North American market to JLT's global specialty strength in
construction. CRP will have access to JLT's global resources to
support its continued expansion across the U.S. and introduce JLT's
wider specialist insurance products to its clients.
JLT and CRP share a strong strategic and cultural fit as
specialist brokers and already work closely together serving a
number of JLT's global construction clients. CRP's product
specialties align with JLT's global construction capabilities,
which have enabled JLT to become the broker to many of the world's
contractors and largest construction projects.
CRP has a strong and experienced management team, all of whom
will remain with the business, which will trade as Construction
Risk Partners, a JLT Group company.
Dominic Burke, JLT Group Chief Executive Officer, said: "Our
partnership with Construction Risk Partners puts us in a strong
position in one of the world's most attractive construction growth
markets. JLT is already one of the world's leading construction
risk brokers and advisors, and this important partnership further
strengthens our global capabilities and will provide a significant
complement to our growing U.S. Specialty business, which we
launched in 2014. The specialty focus and 'client-first' philosophy
that JLT and CRP share together create a compelling proposition for
our construction clients in the United States and around the
world."
JLT will consolidate CRP's results from completion. The
preliminary financial statements of CRP reflect gross assets at
completion of US$12.2m. For the year ended 31 December 2016 the
adjusted profit before tax was US$6.9m. The acquisition will be
financed from JLT's existing cash and debt facilities.
-ENDS -
ENQUIRIES
Paul Dransfield
Group Head of Communications, JLT Group
paul_dransfield@jltgroup.com
+44 (0)20 7528 4933
This information is provided by RNS
The company news service from the London Stock Exchange
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