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Daily Insurance Industry News
Saturday 21st of July 2018
October 8, 2007

Marcus Hearn & Co acquired by CBG

by Richard Kilner

Story link: Marcus Hearn & Co acquired by CBG

CBG Group has paid £2.71m worth of shares and cash to acquire Marcus Hearn & Co, a subsidiary of Marcus Hearn Group of Companies.

The payment will consist of £1,885,000 up front and £825,000 to be paid later. A further cash payment will be made upon completion equal to net assets, expected to be around £800,000.

Of the initial payment £1,825,000 will be made in cash and the remaining £32,520 will be ordinary shares in CBG, worth 184.5p per share and locked for two years.

The deferred payment will be made in two parts of £412,500 in December 2008 and December 2009, contingent upon Marcus Hearn reaching certain levels of turnover.

CBG believe their new acquisition will enlarge their geographical business reach and provide new opportunities through Marcus Hearn & Co’s niche and general insurance products, including the well-known twin and multiple birth insurance packages and the firm’s travel schemes. It also distributes commercial products directly and through an extensive broker network of over 400.

In the year ending 30 September 2006 Marcus Hearn’s audited accounts revealed a profit (before tax) of £69,197 and a turnover of £1,326,950, with net assets of £796,225.

The company will retain its name and continue to operate from its current premises in Shoreditch High Street in London, though it will trade under the style of CBG Insurance Brokers. Existing directors will remain in place, with the exception of the retiring chairman Michael Green.

Operational control of Marcus Hearn will be given to Martin Lewis, technical director of CBG Group plc.

Further personnel changes follow the acquisition, including the current CBG chief executive Robin Slinger becoming deputy chairman, Mike Askew (currently deputy chief executive) becoming group managing director and company secretary Martyn Hughes joins the CBG board as executive director.

Laurie Turnbull, chairman of CBG, stated the the significance of the acquisition is that it allows CBG to extend its business beyond the northwest, with offices in both London and Manchester and five regional centres.

 

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