R K Harrison in RBS-backed buyout of Bowood

R K Harrison Holdings, a leading independent firm of retail and wholesale insurance and re-insurance brokers, has completed the acquisition of Lloyd’s broker Bowood Holdings with the assistance of The Royal Bank of Scotland (RBS).

RBS, through their Financial Institutions Group (FIG) and corporate leveraged finance team, has structured a debt facility to support R K Harrison’s acquisition of Bowood Holdings.

They will also provide the company with a significant rolling credit facility. The rolling credit facility gives the company increased control and flexibility, as well as means to maximise working capital without a fixed number of payments.

The R K Harrison Group has been in existence since 1882 as a Lloyd’s Names Agency and more recently has traded as a respected UK retail broker.

In 1999 the company completed a successful management buy-out from Hiscox Harrison Ltd and in the same year established the first of a growing number of wholesale divisions.

Today, R K Harrison are leaders in providing solutions in bespoke insurance for multi-national and high net worth clients, with offices across the UK and in Bermuda.

The business has nine trading divisions, including retail, property, casualty, reinsurance, political risks and credit, energy, construction, trade credit, and further property and liability operations from their Bermuda office.

Bowood Holdings Limited (BHL) is the ultimate owner of Bowood Partners Limited, the Lloyd’s broker; it acts as the holding company in support of Bowood operations and determines the strategy of the group.

Paul Bridgwater, chief executive of R K Harrison, said: “Bowood Holdings is a very good strategic fit for R K Harrison and brings to the Group a very talented team.

"The acquisition will enhance our international position and will diversify our existing geographical presence. Bowood will also broaden our product offering to existing clients and enhance our scale in key non-marine business lines.

“We have been impressed with the advice and support from the RBS team and are pleased with the funding facilities put in place for the acquisition of Bowood Holdings. We look forward to a continued and long-standing relationship with the bank.”

Chris Vrionides, FIG at RBS, added: “R K Harrison is an existing customer of RBS with a proven track record of successfully managing a growing business. They have a highly regarded management team and we are delighted to have supported them in this acquisition.”

“Our knowledge of the insurance industry and specific position in the Lloyd’s market enhances our ability to understand the needs of both the business and management, and has allowed us to put in place a bespoke facility that is flexible enough to support the future needs of R K Harrison as well as this specific transaction.”