£27m deal follows report in Insurance Times last week
Loss Adjustor Davies has comannounced the completion of a £27 million management buyout.
The move was reported in Insurance Times last week.
In a statement the company said the reorganising and restructuring of the business would to strengthen its position in the UK insurance market.
Under the terms of the deal, Davies Chartered Loss Adjusters LLP (DCLA) will cease to trade, and will be replaced by Davies Group Limited. The buyout also provides an exit for a number of the firm’s partners, including senior partner David Ede who will retire soon after the transaction following 39 years’ service.
Davies Group’s management team will be led by new managing director Mark Chapman, formerly deputy senior partner at DCLA. He will be supported by other key DCLA managers including Adrian Palmer, Les Wright, and Darren Coombes. In addition, Mark Molyneux, a former managing partner at Ernst & Young, will join the team as chairman.
The buyout has been backed by private equity firm LDC, which is taking a majority shareholding. Ongoing management will retain a substantial stake in the business.
Managing director Mark Chapman said: “The DCLA partnership has evolved successfully over the last 40 years to become one of the leading players in the UK insurance market, but we felt the time was ripe for the next stage in that evolution. This deal represents that next stage; it will lead to a reinvigorated Davies Group able to grow and develop in line with our customers’ needs.
“By introducing a new corporate structure we are bringing a fresh ethos and commercial drive to the firm which will provide the opportunity to continue building on our recent growth. In LDC we’ve secured a supportive investor with a long, successful track record of working closely with management teams to take businesses to the next level of success.”
Following the buyout, the company said that management and LDC will focus on the development of new specialist products and services that respond to the changing needs of Davies’ clients and the wider insurance industry.
In addition to the core adjusting of property claims, the £25 million turnover company has a number of specialist loss adjusting divisions which handle complex claims such as subsidence, liability, construction and engineering and major loss. Davies is also able to provide assistance in fulfilling claims through its contractor and disaster restoration networks.
Davies employes 4000 people through 33 regional offices.
