Cooper Gay is expected to expand its presence in the UK market, with further acquisitions likely, following investment from Sonae SGPS.
SC Insurance and Risk Services SGPS, SA, a subsidiary of Portuguese investor Sonae SGPS, has agreed to acquire 14% of Cooper Gay, with an option to increase its holding to 28%.
Once the transaction is completed, SC Insurance and Risk Services will become the sole corporate shareholder of Cooper Gay, the remaining capital being spread amongst professionals of the company.
Commenting on the agreement, Geoff Kinsella, business development executive Cooper Gay, said: “We have aggressive growth and development plans. This cash injection will help us to achieve our long-term goals.”
Cooper Gay hopes to make the most of the opportunities presented by broker acquisitions. In August 2006, it purchased the remaining 49% stake in Junge & Co Versicherungsmakler GmbH from E.ON Risk Consulting, strengthening its position in Continental Europe.
Moving forward, Kinsella said the global reinsurance-broker would be looking at acquiring broker houses in the UK: “To grow in this market you need to be looking at acquisitions.”
“We don't want to be swallowed by one of the big brokers,” added Kinsella. “Our management and staff are keen that we retain our independence. This investment allows us to stay that way.”
“Investment normally comes at a price,” he said. “Investors, for example, often start tinkering with management structures. But in this case, our excellent working relationship with Sonae helps us to maintain our management philosophy and culture."
Toby Esser, chief executive officer of Cooper Gay, added: “Sonae has been a close business partner of Cooper Gay for a number of years. I am therefore delighted that such a prestigious company has chosen to take a minority interest in Cooper Gay. Through this investment, Cooper Gay has secured its long-term future as an independent broking operation and gained the financial resources to support its strategic growth plans."
