We advised the shareholders of Weald Broking Management Limited, the holding company of Weald Insurance Brokers Limited, in relation to the sale of the company to a newly incorporated special purpose vehicle (SPV) set up by Broker Network Limited, who are on the acquisition trail consolidating a number of insurance brokers. As our clients received a proportion of the consideration in cash, plus a stake in the SPV, the deal involved negotiation over the share sale aspects, as well as documents relating to the continuing shareholding in the SPV. This included a put and call option for the sale by our clients of such shares in the future.
Specialising in property-related and commercial risks, fleet, motor and motor trade insurances and policies for high net worth individuals, Weald employs over 40 people and has a gross written premium of over £14m.
This transaction represented the sixth acquisition of a “regional powerhouse” by Broker Network and demonstrates our established expertise in dealing with complex business transactions.
The transaction team at Thomson Snell & Passmore was lead by Corporate Partner, Nick Gabay assisted by Joseph Hartland, Ben Stepney, a Senior Associate in the Employment team and Catherine Linsell, a Solicitor in the Commercial Property team.
Nick Gabay commented on the transaction: “The acquisition works for all parties. Broker Network gains another valuable partner to build on their recent expansion and the Weald shareholders have realised the value in the hard work they have put in over the years, with many of such shareholders rolling some of their proceeds into new shares in the SPV acquirer, incentivising them to continue to grow the value of the business going forward”.
Weald managing director Gibbs added: “We’re thrilled to have partnered with Broker Network and are excited at the opportunities our new relationship will bring for the benefit of our clients. The partnership allows us to strengthen our broking footprint in the wider region and focus our strategy on continued growth.”
If you would like further information in relation to Mergers and Acquisitions please contact Thomson Snell & Passmore Corporate & Commercial Partner, Nick Gabay.