Direct Group plans acquisition drive

by Richard Kilner

Story link: Direct Group plans acquisition drive

Direct Group has completed a major debt refinancing which will enhance the firm’s market consolidation strategy with the extra funding now available.

The firm has moved its banking relationship to Lloyds TSB Corporate Markets as part of the refinancing.

Direct Group intends to use the facilities, provided by Lloyds TSB Corporate Markets Acquisition Finance, to take advantage of acquisition opportunities and to expand through organic growth as well.

In 2008 Direct Group made its first acquisition: Millennium Insurance, a general insurance firm based in the Midlands which catered to the mortgage broker and IFA market.

In the first half of 2009 Direct Group took over MetLife’s UK protection arm’s administration and claims handling business and underwent the transfer of Nexus and Travel Protection Services (TPS).

CEO Derek Coles has stated that the firm’s strategic plan is to deepen its offering to clients through the acquisition of businesses, as well as through organic growth.