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Daily Insurance Industry News
Wednesday 23rd of May 2018
February 25, 2008

Towergate to sell 25% share to Candover

by Gill Montia

Story link: Towergate to sell 25% share to Candover

Peter Cullum, the founder and majority owner of insurance group, Towergate, is reported to be negotiating the sale of around 25% of the business to Candover, for up to £850 million.

Towergate is the UK’s largest privately-owned insurance intermediary and Candover is reported to be interested in acquiring a share of the business before a flotation on the London Stock Exchange.

The timing of a sale may also be influenced by the changes to capital gains tax due to come into effect in April of this year.

Towergate has expanded rapidly since it was formed in 1997, through a succession of large acquisitions. It now employs around 3,500 staff across 100 offices.

It has also developed niche markets, including Formula One teams and drivers, rugby union stars and the British Army.

The business was valued at around £3 billion last summer, when private equity interest in Towergate was at its height.

Mr Cullum owns around two-thirds of Towergate, which means the sale of a share to Cullum could still leave him in control of a significant share of the group.

 

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