M&A Deal Summary

IAG Acquires ERS Insurance

On January 8, 2007, IAG acquired insurance company ERS Insurance from Bregal Investments and Duke Street Private Equity for 570M GBP

Acquisition Highlights
  • This is IAG’s 1st transaction in the Insurance sector.
  • This is IAG’s 2nd largest (disclosed) transaction.
  • This is IAG’s 1st transaction in the United Kingdom.
Investment Fate
  • ERS Insurance was divested to a consortium of buyers in 2013.

M&A Deal Summary

Date 2007-01-08
Target ERS Insurance
Sector Insurance
Buyer(s) IAG
Sellers(s) Bregal Investments
Duke Street Private Equity
Deal Type Add-on Acquisition
Deal Value 570M GBP

Target

ERS Insurance

London, United Kingdom
website
ERS Insurance is a Lloyd’s underwriting business (Syndicate 218), which has been a leading motor insurer for more than 60 years, providing quality commercial insurance solutions to customers in the United Kingdom. ERS offers a diverse range of insurance for private cars, classic cars, vans, motorcycles, taxis, minibusses, fleets, haulage, and agricultural vehicles.

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Buyer(S) 1

Buyer

IAG

Sydney, Australia

website


Category Company
Founded 1920
Sector Insurance
Employees13,500
Revenue 8.9B AUD (2022)
DESCRIPTION

IAG is the parent company of a general insurance group with controlled operations in Australia, New Zealand, Thailand and Vietnam, employing over 13,500 people. Insurance Australia Group was founded in 1920 and is based in Sydney, Australia.


DEAL STATS #
Overall 1 of 3
Sector (Insurance) 1 of 3
Type (Add-on Acquisition) 1 of 2
Country (United Kingdom) 1 of 1
Year (2007) 1 of 1
Size (of disclosed) 2 of 2
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-06-30 HBF Holdings Pty

Perth, Australia

HBF Holdings Pty Ltd. is a distributor of general insurance products such as home, car, and travel insurance.

Buy -

Seller(S) 2

SELLER

Bregal Investments

London, United Kingdom

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 2002
PE ASSETS 7.0B EUR
Size Mega
Type Sector Agnostic
DESCRIPTION

Bregal Investments LLP is a private equity firm focused on buyouts and growth capital financings of middle-market companies. Bregal Investments targets equity investments between €30 and €150 million in companies valued in excess of €75 million. Bregal is based in London.


DEAL STATS #
Overall 2 of 15
Sector (Insurance) 2 of 4
Type (Add-on Acquisition) 1 of 7
Country (United Kingdom) 1 of 9
Year (2007) 1 of 2
Size (of disclosed) 1 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-08-01 FiveTen Group

London, United Kingdom

FiveTen Group Ltd. is a provider of staffing solutions.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-07-01 QA

London, United Kingdom

QA is an independent provider of IT professional and personal development skills training with more than 240 instructors delivering over 1,200 different courses across 26 centers throughout the UK. QA Group is comprised of four fast-growing divisions- QA Learning, QA Apprenticeships, QA Consulting and QA Higher Education- all of which deliver innovative and cutting edge skills solutions to UK organisations. QA was founded in 1985 and is based in London, United Kingdom.

Buy -
SELLER

Duke Street Private Equity

London, United Kingdom

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1988
PE ASSETS 3.0B EUR
Size Large
Type Sector Agnostic
DESCRIPTION

Duke Street Private Equity is a European private equity firm that targets investments in mid-market UK and French businesses valued between €50 and €350 million. Duke Street looks to build companies through organic growth and acquisitions. Sectors of interest include business services and outsourcing, retail and consumer, food, industrial, healthcare, leisure, and financial services. Duke Street Private Equity was founded in 1988 and is based in London.


DEAL STATS #
Overall 17 of 43
Sector (Insurance) 1 of 1
Type (Add-on Acquisition) 4 of 17
Country (United Kingdom) 6 of 25
Year (2007) 1 of 3
Size (of disclosed) 1 of 18
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-09-27 2e2 Group

Newbury, United Kingdom

2e2 Group Ltd. is an IT services provider offering IT infrastructure, maintenance, networking, education and other managed services. 2e2 Group was formed in 2002 and is based in Newbury, United Kingdom.

Buy £130M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-02-01 Esporta Group

Wokingham, United Kingdom

Esporta Group is a operator of premium health and fitness clubs. Its clubs include fitness arenas and exercise studios; indoor and outdoor pools; spas, saunas, and steam rooms; vibrant restaurants and bars; health and beauty areas; and indoor and outdoor racquet facilities.

Sell £460M