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(Alliance News) - Pensions consolidator Chesnara PLC said Friday it acquired the Dutch life and savings policies from Belgian lender Argenta Bank-en Verzekeringsgroep NV for EUR29 million in cash.
The deal will see Waard Group - the Netherlands-based subsidiary of Chesnara - acquire 44,000 term and savings policies for EUR29.2 million. Chesnara will fund the acquisition with existing cash resources.
In 2018, the portfolio - which has EUR380 million in gross assets - generated EUR3.7 million in pretax profit. Over the same period, Chesnara itself made GBP27.0 million in profit.
"This is a very pleasing acquisition for Chesnara," Chief Executive Officer John Deane said. "It will create material operating synergies with the existing Dutch business and, after the Monuta portfolio, it is the second deal that will be integrated into, and add value to, our Dutch closed-book platform Waard Group.
"The business is well capitalised, cash generative and profitable, while fulfilling our acquisition strategy of being economic value accretive, operating within our core target markets and offering a strong strategic fit at an attractive discount," Deane added.
Shares in Chesnara were 3.2% higher at 274.50 pence in London on Friday.
By Ahren Lester; ahrenlester@alliancenews.com
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