LONDON (Alliance News) - Charles Taylor PLC on Thursday said its subsidiaries bought five of the FGR group of companies for up to USD14.5 million.
FGR is a claims programme management and loss adjusting group. The company believes that FGR will build on Charles Taylor's existing network, presence and client relationships across Latin America.
The businesses acquired under the transaction include FGR SA, FGR Affinity Ltda, FGR Hanna Ltda in Chile, FGR Peru Ajustadores de Seguros Sociedad Anonima and FGR Affinity Peru SAC.
FGR reported revenue of USD18.1 million, adjusted pretax profit of USD1.2 million and adjusted earnings before interest, taxes, depreciation, and amortization of USD1.5 million in 2017.
Charles Taylor said it paid USD4.7 million in cash, funded from its existing banking facility. In addition to that, an initial payment of USD2.1 million was paid to reflect the "work in progress" within the business.
Forecast deferred consideration of USD5.3 million will be paid, based on the business' performance over the three years following completion of transaction. Total consideration is capped at USD14.5 million, the company said.
"This acquisition demonstrates our commitment to growing our capabilities in Latin America," said Chief Executive David Marock.
"It marks an important step forward in delivering our strategy to achieve market leading positions for each of our businesses and expand into growing economies and markets," added Marock.
Charles Taylor shares were trading 1.7% higher on Thursday at 271.00 pence each.