Electra Private Equity pockets £45m from Davies sale

(ShareCast News) - Epiris, the portfolio manager of buyout fund Electra Private Equity, has sold insurance claims service provider Davies Group to US-based private equity firm HGGC for £90m.Electra has received proceeds of £45m from the sale, which is a £2m uplift on the valuation of its investment in Davies at 30 September 2016, equivalent to a 4p increase in net asset value per share.Davies is a multi-award winning insurance claims service provider, delivering third-party administration and specialist technical services to insurance intermediaries, the Lloyd's market, UK and global insurers and large self-insured businesses.It manages more than 170,000 claims each year, handling in excess of £1.2bn of annual claim cost across property, casualty, motor and niche insurance classes. The company also provides integrated technical services including loss adjusting, surveying, fraud detection, and supply chain solutions.Epiris led the £61m acquisition of Davies in 2011 and since then, has delivered its transformation strategy through management change, M&A and operational improvement. The business is now significantly larger and much better positioned than at entry, Electra said.Alex Fortescue, managing partner at Epiris, said: "We are delighted to have brought the investment in Davies to a successful conclusion. Dan and his team have done a tremendous job in transforming the business into a growing and successful TPA."At 1115 GMT, Electra shares were flat at 4,651.14p.