Gresham backs £12.3m MBO of claims firm LAS

Private equity firm Gresham has ploughed £12.3m into the management buyout of claims management firm Lanes Assistance Services (LAS).

The investment will buy-out existing shareholder Lanes Group plc and provides significant capital to develop LAS’ infrastructure and personnel to drive future growth. Gresham provided 100% of the funding.

LAS has offices in Manchester and Birmingham and provides outsourced claims management services for the insurance industry, including a number of top UK insurers.

Gresham said LAS is well positioned to grow organically through expanding its client base and through acquisition.

Gresham’s investment will be used to enhance LAS’ operational infrastructure, expand its service offering and strengthen the senior management team.

Andy Marsh, partner at Gresham said: “We have been looking to invest again in this market for some time now. The key for us has been to identify a market leading business that delivers real and quantifiable cost savings for its insurer companies. Our work on LAS substantiated this. We are delighted to be supporting the management as they take the company to the next stage in its growth.”

The management buy-out is led by LAS managing director Darren Cooper and commercial director Tim Walker.

Darren added: “Partnering with Gresham will ensure that we are well placed to maximise the wealth of opportunity which exists in the market. The investment will ensure that the high level of customer service LAS provides is maintained as volume increases and that future growth is managed in a controlled manner. It’s a very exciting time for us.”

Recent Gresham investments in the insurance and claims management sectors include insurance broker Giles which was successfully exited in 2008 yielding an investment return to Gresham of 2.8x money and Ansa, a claims management business exited in 2005 which yielded a return of 3x money.

The Gresham team comprised Andy Marsh, Iain Wolstenholme and Simon Hemley.