1st Jun 2006 07:01
Jelf Group PLC01 June 2006 STRICTLY PRIVATE AND CONFIDENTIAL Date: 1st June 2006 On behalf of: Jelf Group plc ("Jelf", the "Group" or the "Company") Embargoed until: 0700hrs - 1st June 2006 Jelf Group plc ACQUISITION OF Cherwell Insurance Management The Board of Jelf Group plc, a leading corporate intermediary in the South ofEngland and Wales, announces today that it has acquired Cherwell InsuranceManagement. Based in Long Hanborough, near Oxford, Cherwell is a General Insurance Brokerwith a premium income in excess of £4.5m (2005). The company employs 11 staff,including managing partners Mark Ace and Roy Haines who will be retained underthe deal. Following this acquisition the enlarged Jelf's premium income isexpected to be in excess of £90m. The exact size and structure of the deal is subject to confidentiality clausesbut is in line with the market norms. There will be an initial consideration,paid at completion, with additional payments based on performance over the next3 years. Part of this consideration will be taken in the form of shares in JelfGroup plc. Commenting on the deal, Alex Alway, Group Chief Executive at Jelf Group plc,said: "The acquisition represents another step in the Group's strategy to be theleading intermediary in the South of England and Wales. Acquiring Cherwellextends the Group's influence and enhances the general insurance team in theSouth of England. This acquisition offers the Group more opportunities tocross-sell our full range of services whilst enhancing margins as a result ofthe enlarged Group's buying power." Enquiries: Alex Alway, Group Chief Executive, Jelf Group plcJohn Harding, Group Finance and Operations Director, Jelf Group plc01454 272799 Alastair Cade/Jonny Franklin-Adams, Daniel Stewart & Company plc020 7776 6550 Ends Notes to Editors: Information on the Company • Jelf Group plc was founded by Chris Jelf in 1989. Today, the Company is an established corporate intermediary primarily based in the South of England and Wales offering a range of corporate services principally in the areas of commercial insurance, healthcare, and financial services. Since incorporation, the Company has expanded the business both organically and through targeted acquisitions. Today the Group operates from 15 locations, advising over 12,000 corporate clients • Since the Company's flotation on AIM in October 2004, it has actively pursued an acquisition strategy, focusing on the South of England and Wales. As a result of a number of strategic appointments and acquisitions utilising existing cash flows and funds raised at the time of flotation, this strategy is delivering both organic and acquired growth. Significant commercial insurance and healthcare acquisitions include: . 2001 Corporate Healthcare Management - Healthcare partnership • 2002 Spring Gate Insurance - Purchase of a book of commercial insurance • 2003 SLF Insurance (Services) Ltd - Purchase of a book of commercial insurance • 2003 Kallender Walwyn Ltd - Purchase of commercial insurance business based in Trowbridge • 2003 Pontin and Stein - Corporate Healthcare partnership • 2004 Managed Healthcare Ltd - Acquisition of independent Somerset based brokerage specialising in healthcare and private medical insurance • 2005 South West operations of insurance broker RK Harrison • 2006 Goss Group - Acquisition of Reading based independent insurance broking and financial services group, one of the largest in South East England • 2006 Brian D Thomas - One of the largest independent insurance brokers in South Wales Further information is available on Jelf at the Company's website:www.jelfgroup.com. Information on Cherwell Insurance Management Cherwell Insurance Management is a commercial and personal lines (90/10 splitrespectively) insurance brokerage based in Long Hanborough, near Oxford, and ismanaged by joint Partners Mark Ace and Roy Haines. Reasons for the Acquisition The Acquisition is in line with the Company's stated strategy of acquiringinsurance intermediaries and the Directors believe it to be a good fit with theCompany for the following reasons: • Strong corporate focus; • Greater insurance business buying power generating increased commission rates; • Generation of cross selling opportunities. Further Acquisitions As previously stated, the Board is actively pursuing a policy of growth throughacquisition. The Board is aware of a number of opportunities some of which,after careful consideration and due diligence, the Company hopes to be able toacquire in due course. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
JLF.L