Auto Indemnity Group has acquired the entire issued share capital of the Colegate Group for £1.1m, payable in cash.
The deal includes Colgate subsidiaries Colegate Vehicle Hire Ltd (CVHL), Colegate Accident Assistance Ltd (CAAL), and Motor Hire (Diss) Ltd (MHDL).
The Norfolk-based Colegate Group provides credit hire vehicles to no-fault motor accident victims. In the year ended 31 March 2003 the combined turnover of the three companies was £6.6m, with an operating profit of £300,000.
Auto Indemnity said the acquisition would complement its insurer referred business. It also said the deal would provide it with a significant entry into the broker market on a national level, with access to a large fleet business, an area where the group currently had no representation.
Auto Indemnity said it intended to dispose of the vehicle fleet owned by the Colegate Group and would integrate the business with its existing operations.
