Johannesburg-listed Alexander Forbes has agreed to buy a 60% stake in consulting actuaries Lane Clark & Peacock (LCP). The move will help Alexander Forbes expand its range of financial and risk services both in the UK and internationally.
The deal, which values LCP's business at about £46m, will see LCP become a limited liability partnership (LLP) but continue to trade under its current name. Alexander Forbes's option allows it to become a member of the LLP in the first week of June 2002 with an initial 60% interest.
Alexander Forbes has a further option to increase its stake to 80% after 3 years; the balance will be available to continue to reward and incentivise those working at LCP.
Alexander Forbes UK director Dick Wood said: "With the largest actuarial practice in South Africa and one of the leading practices in Mexico, we are delighted to be able to include such a respected UK firm within our group.
"We have identified that we share common values and we look forward to working with LCP to keep Alexander Forbes and LCP at the forefront of developing innovative services for our expanding global client base."
LCP is a UK-based firm of consulting actuaries with turnover for the year ending 31 May 2001 of £23.2m. In the 5 years to 31 May 2001, LCP grew revenues and profits at compound rates of 22% and 24% respectively.
It has 40 partners and over 250 staff and specialises in providing actuarial and other related services to occupational pension schemes, companies and insurance related organisations.
Alexander Forbes group chief executive Graeme Kerrigan, and UK director Dick Wood will join the LCP board.
LCP senior partner Martin Slack: "The market for actuarial services is becoming increasingly global.
"The partners of LCP are delighted to have found a major international strategic partner that will also give us access to capital to enable us to further develop our worldwide network - and thereby to maintain the quality and expand the range of the services we are able to offer to our clients."
