Jelf swoops for £21m GWP Sussex broker

Consolidator Jelf has made its first acquisition in the South East with the purchase of £21m GWP Sussex and Kent based broker Argyll, Insurance Times can reveal.

Argyll, which previously set a GWP target of £60m by 2010, is Jelf's second acquisition since private equity giant 3i QPE purchased a 27.9% stake in the business in February. It takes the broker's total premiums under control to £196m.

The deal is worth £9.94m in cash and share options, and follows the purchase of Devon-based Bob Gee insurance brokers last month, and Manchester heavyweight Manson for £16.2m cash and share options.

Jelf chief executive Alex Alway, who had previously hinted the broker was looking at making an acquisition in the South, said: "I am delighted to announce this acquisition. It is an important step forward for Jelf as it represents another extension of our geographical footprint into [the region], and also represents another 'hub for growth' around which we will consolidate small scale acquisitions. This is entirely in line with our 'buy and build' strategy."

The news comes as 3i revealed it had purchased a stake believed to be worth £50m in insurance group, Hyperion.

Meanwhile, 3i's quoted investment arm, QPE, has £700m to spend on AIM-listed companies, including Jelf.

In a related development, on Monday the AIM-listed broker exercised the option to distribute over 5,000 ordinary shares worth 1p each. Jelf has over 20 institutional investors including Allianz and Aviva, both of whom own around 5 per cent of the company.