Lockton sells retail divisions to Cullum Ventures
by David Masters
Lockton has sold a number of its retail divisions to Cullum Capital Ventures (CCV). The divisions sold are worth over £40 million in gross written premium (GWP).
The deal was completed at the end of last week, and sees CCV acquiring the business units of Lockton that mostly deal with UK-based SME clients. The business units acquired have a combined brokerage of £6 million. The deal also involves the transfer of 72 of Lockton’s staff from Lockton’s retail offices in Guernsey, Jersey, Southampton, Notthingham, and Newcastle.
Lockton said in a statement that: “Lockton International has carried out a strategic review of its retail operations. As a result, we have decided to sell our operations in the Channel Islands and Southampton. In addition to the operations in the Channel Islands and Southampton, Lockton International’s Business Risk Solutions operations in Nottingham and Newcastle will also be sold.
“The retail market remains the foundation for Lockton in the UK and we are continuing to invest in our people and infrastructure. Our focus throughout Lockton is on our clients and ensuring that we provide them with the best possible service, solutions and expertise.”
This acquisition is the largest ever made by CCV – almost double the size of the company’s previous largest, Morgan Law, which CCV acquired in November.
According to Tim Johnson, chief executive of CCV, the acquisition is not a move away from the company’s strategy of buying small brokerages. Johnson said that “it just so happens that this deal includes a number of divisions within the same company.”
CCV has another deal to be completed very soon, with five others planned in the near future. These acquisitions would bring CCV’s controlled premium to £200 million GWP by the end of this year.