CBG acquire Howgud Ltd for £2.3 million

by David Masters

Story link: CBG acquire Howgud Ltd for £2.3 million

CBG, a community broker based in Eccles, Manchester, has acquired Oldham-based general insurance group Howgud Ltd in a deal worth over £2.3 million.

CBG is to pay an initial consideration of £1.2 million in cash up. This will be followed by a deferred consideration £1.125 million over the next two years if targets are met.

The deferred consideration is to be paid in cash and shares, with £575,000 being paid in April 2009, and £550,000 being paid in April 2010.

Howgud’s trading subsidiaries include EDN (Insurance Services) Ltd, EDN (Financial Services), and E Davies (Northern)) Ltd. In 2006, Howgud reported pre-tax profits of £220,000 on turnover of £1.7 million.

Under the terms of the acquisition, EDN’s current directors will be employed by CBG.

This is CBG’s second regional acquisition in 2008, and the group now employs over 180 people in the North West.