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CBC in Management Buyout

2017-02-23 09:41:47


The management of CBC UK Ltd (CBC) is delighted to announce a successful completion to a management buyout, effective 17th February 2017.

CBC is a Lloyd's Broker established in 1985. The business is a mixture of retail and wholesale, with an enviable network of regional producing brokers. The management team, led by Rob Cottingham, took over in 2016 and implemented a three year growth strategy.

In 2016 under the leadership of Rob Cottingham, CBC achieved a significant growth in earnings. For the year ending 31st December 2017, CBC has budgeted revenue of £5.5m with budgeted EBITDA of £630,000.

An opportunity arose for management to buy out the major shareholder, Dr Jerome Booth. The MBO was facilitated by Andrew Wallas who brought BP Marsh and Partners PLC (BPM) to the table to create a partnership between CBC and BPM. BPM is a specialist private equity investor in early stage financial services businesses with an unparalleled track record in the insurance industry.

This transaction brings Andrew Wallas back to the Lloyd’s Insurance Market where he has previously been Chief Executive of Nelson Hurst and Marsh Ltd, CEO and Chairman of Andrew Wallas and Marsh Ltd and Glencairn Ltd as well as Non-Executive chairman of Martello underwriting Ltd, backed by Penta Capital, which was sold to RSA Plc. Andrew Wallas will join the board of CBC as Non- Executive Chairman.

Rob Cottingham has over thirty years experience in the insurance industry, having held a number of senior positions at Andrew Wallas and Marsh Ltd and Glencairn Ltd, in addition to CBC. Rob joined the board at CBC in 2011 and became Chief Executive in November 2015.

Rob Cottingham, Chief Executive of CBC said "I am delighted that with the help of Andrew Wallas and BPM we were able to secure the company for the management and staff of CBC. As is well known, insurance is a people's business and the future of CBC now lies in the hands of its talented and dedicated team. I am extremely excited about our future prospects and having the opportunity to work with Andrew Wallas again."

Andrew Wallas said: “CBC is a long established Lloyd's broker with a solid client base, talented and motivated people and substantial potential. I am delighted by this dynamic opportunity to re-enter the London Insurance Market and to renew my long-standing relationship with B.P. Marsh.”

Dan Topping, Chief Investment Officer of BPM, who will join the board of CBC as a Non-Executive director, said: "This is a classic MBO transaction for BP Marsh, in partnership with a motivated management team and with involvement from one of our long standing associates. We are pleased to invest in a Lloyd’s broker that we can bring our experience and market knowledge to, given our track record of developing these businesses. I am also glad to be re-igniting the group's relationship with Andrew Wallas which has proved to be a successful formula in the past."