15th May 2014 10:24
LONDON (Alliance News) - Charles Taylor PLC Thursday said it has acquired KLA Holdings Ltd and its subsidiary, Knowles Loss Adjusters Ltd, in a deal worth up to GBP3.3 million, as it looks to beef up its loss adjusting services.
In a statement, Charles Taylor, which provides professional services to the insurance market, said it will make an initial GBP1.3 million payment by issuing 633,393 shares, based on the average price of the shares in the 30 days to May 8. The sellers of KLA Holdings intend to sell 571,134 of the shares immediately. If the proceeds they receive are below the market value of the 30-day average, Charles Taylor shall make up the shortfall in cash, it said. The sellers of KLA are entitled to three annual earn-out payments depending on whether certain profit targets are met. Up to half of the earn-outs can be paid in shares.
After taking into account the costs of the transaction, the acquisition is expected to be "modestly earnings enhancing" in 2014, Charles Taylor said. KLA made a GBP400,000 net profit in the year ended July 31 and had gross operating assets of GBP1.6 million at the end of that period.
Charles Taylor said it has acquired the UK and Ireland property and casualty claims focused business under its strategy of growing its professional services business.
Knowles targets UK commercial, personal, construction and professional lines claims. The company employs around 70 personnel and will continue to trade under the Knowles name following the acquisition.
David Parker, a founder and managing director, and Simon Smith, a director, will be "instrumental" in driving the business forward, Charles Taylor said.
Charles Taylor Chief Executive said Knowles is an "excellent fit" and will complement the company's existing business.
"This acquisition will allow us to develop and grow our UK loss adjusting capability and brings us an established business, client base and network of UK offices, which will position us well to respond to tenders for those international and national account nominations, which require a network of offices across the UK as well as overseas," Marock said in a statement.
"This acquisition is a further demonstration of our commitment to grow the group's revenue and profit based on our professional services expertise," the CEO added.
Shares in the company last traded at 265.00 pence per share.
By Samuel Agini; [email protected]; @samuelagini
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