M&A Deal Summary

Warburg Pincus, TowerBrook Capital Partners and Stonepeak Acquire AA

On December 9, 2020, private equity firm Warburg Pincus, private equity firm TowerBrook Capital Partners and infrastructure investor Stonepeak acquired insurance company AA for 3.8B GBP

Acquisition Highlights
  • This is Warburg Pincus’ 15th, TowerBrook Capital Partners’ 4th and Stonepeak’s 1st transaction in the Insurance sector.
  • This is Warburg Pincus’ 2nd, TowerBrook Capital Partners’ and Stonepeak’s 4th largest (disclosed) transaction.
  • This is Warburg Pincus’ 25th, TowerBrook Capital Partners’ 12th and Stonepeak’s 3rd transaction in the United Kingdom.

M&A Deal Summary

Date 2020-12-09
Target AA
Sector Insurance
Buyer(s) Warburg Pincus
TowerBrook Capital Partners
Stonepeak
Deal Type Going Private
Deal Value 3.8B GBP

Target

AA

Basingstoke, United Kingdom
website
AA is an UK insurance broker with over 2.3 million insurance policies that has a competitive advantage through sophisticated customer analysis ratings and tailored pricing capabilities based on proprietary member data. These capabilities combined with the AA brand and web presence (with over 190 million visits per annum) create a very strong offering in the insurance market. Building on these strengths the AA can provide more competitive and distinctive offers for members in the future. The company remains focused on actions to improve performance in our Motor insurance business by targeting rate reductions from the panel, improving retention performance in call centers, and improving online customer experience. Further, as part of the evolution of the insurance business model, the company will relaunch Financial Services offering to increase its footprint. AA was founded in 1905 and is based in Basingstoke, United Kingdom.

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Buyer(S) 3

Buyer

Warburg Pincus

New York, New York, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1966
PE ASSETS 83.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Warburg Pincus is a mega-sized, global private equity firm focused on investment opportunities across North America, Asia, and Europe. Warburg will consider investing at various company stages, from early-stage opportunities to distressed situations. Warburg Pincus is organized by industry groups. Verticals include financial services, healthcare, technology, media & telecommunications, energy, consumer & industrial, and real estate. Within financial services, Warburg will consider asset/wealth managers, banks, exchanges, financial technology, insurance, transaction processing, private banking, and specialty/consumer finance. Within healthcare, specific areas of interest include medical devices, healthcare services, and biotech/pharmaceuticals. Within technology/media/communications, Warburg targets software, media/internet/information, financial technology, telecom, business services, and systems/semiconductors. Within energy, specific areas of interest include oil/gas exploration, power generation/transmission, and alternative energy. Warburg Pincus raised its first fund in 1966 and is based in New York City.


DEAL STATS #
Overall 432 of 475
Sector (Insurance) 15 of 17
Type (Going Private) 11 of 11
Country (United Kingdom) 25 of 26
Year (2020) 18 of 18
Size (of disclosed) 2 of 47
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-12-08 Everise

Plantation, Florida, United States

Everise provides customer service for healthcare, transport, logistics, insurance, financial services, and tech businesses. The Company solves problems for the millions of customers of some of the world’s leading brands, by combining the best technology with compassionate service. Everise was founded in 2016 and is headquartered in Plantation, Florida.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-12-23 Avaloq Group AG

Zürich, Switzerland

Avaloq provides powerful cloud solutions for banks and wealth managers around the globe through the business process as a service (BPaaS) and software as a service (SaaS) along with on-premise solutions. Avaloq's vision for the future of wealth management is to maintain the human relationship an investor has with an advisor, to enhance the relationship through technology, and to increase engagement and satisfaction. The democratization of wealth management will allow more people to have access to a greater quantity and quality of investment strategies and advice that was once reserved for ultra and high net worth individuals only. Avaloq Evolution was formed in 1985 and is based in Zürich, Switzerland.

Sell -
Buyer

TowerBrook Capital Partners

New York, New York, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 2001
PE ASSETS 17.4B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

TowerBrook Capital Partners is a private equity firm focused on leveraged buyouts, leveraged build-ups and distressed situation investments throughout North America and Europe. TowerBrook prefers control-oriented investments and actively pursues complex situations that other firms may avoid. Target sectors include consumer services, distribution, beverages, pharmaceuticals, media, technology, communications, software, and healthcare. TowerBrook Capital Partners was established in 2001 and is headquartered in New York City.


DEAL STATS #
Overall 73 of 92
Sector (Insurance) 4 of 5
Type (Going Private) 2 of 3
Country (United Kingdom) 12 of 16
Year (2020) 5 of 5
Size (of disclosed) 1 of 12
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-12-03 Consolis Rail Business

Brussels, Belgium

Consolis Rail Business consists of a portfolio of brands that designs and manufactures sleepers and other precast concrete products for railways for close to 100 years.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-01-15 Coaction

Morristown, New Jersey, United States

Coaction is a property and casualty insurance company that designs unique insurance solutions to help customers improve their business and realize value from their insurance purchasing decision. Coaction was founded in 2009 and is based in Morristown, New Jersey.

Buy $586M
Buyer

Stonepeak

Investor Investor Investor Investor Investor

website


Category Infrastructure
Founded 2011
PE ASSETS 57.1B USD
Size Mega
Type Sector Focused
DESCRIPTION

Stonepeak is a private equity firm focused on North American infrastructure investing. Specific areas of interest include energy assets, power/renewables, transportation, utilities, water, and communications. Stonepeak was formed in 2011 and is headquartered in New York City.


DEAL STATS #
Overall 24 of 36
Sector (Insurance) 1 of 1
Type (Going Private) 1 of 4
Country (United Kingdom) 3 of 3
Year (2020) 7 of 7
Size (of disclosed) 4 of 9
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-12-01 GreenPeak

Taipei, Taiwan

GreenPeak Renewables is a partnership with a Taiwanese solar developer, Smart Green Energy, that has a dedicated focus on the solar market in Taiwan. Smart Green Energy brings more than 11 years of experience in solar development in Taiwan and is one of the leading full-service solar developers in the region. The partnership is focused on sourcing and developing a solar portfolio in one of the most attractive and established renewable energy markets in Asia with scale and speed.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-01-13 Hygo Energy Transition

Hamilton, Bermuda

Hygo Energy Transition is a provider of liquefied natural gas-based downstream services based in Hamilton, Bermuda.

Sell -