CBG Announces Acquisition of Barclay Brown
Manchester based insurance broker CBG has today announced that it has successfully completed the acquisition of niche broker Barclay Brown, in a move that will see the broker consolidate its regional holdings in the North West insurance market.
The completion of the deal was announced to the Stock Exchange today, which includes a two-tier payment plan including a cash sum and deferred payments linked to the performance of the business following the completion of the acquisition. Initially, a cash payment of £1,450,000 will be made to secure the acquisition, whilst additional share allocations and liquid finance will be used to ‘top-up’ the deal pending performance.
The deferred portion will amount to some £1,250,000, with an additional £600,000 available depending on further objectives, as an incentive to ensure ongoing strong performance from Barclay Brown, which will be retained in full to operate within the CBG corporate structure.
Speaking today on the deal, Lauire Turnbull of CBG said taht the move would be good for the organisation as a whole, bringing both expansion and improving value for customers of the broker network.
“The acquisition of Barclay Brown is significant for CBG as it consolidates our strong position within the North West market. This is a further material step change for our business, and the benefits to be derived from consolidating and integrating Barclay Brown will enhance our client service proposition and extend value for our shareholders.”
Meanwhile it is proposed that whilst the integration can now be completed, payment of the deferred portions will be made over the coming two years in recognition of the current targets established as part of the acquisition deal.
Category: Business Insurance News, Companies News
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