B.p Marsh Regulatory News (BPM)

4 Feb 2008 14:46

B.P. Marsh & Partners PLC04 February 2008 Date: 4th February 2008 On behalf of: B.P. Marsh & Partners Plc ("B. P. Marsh" or the "Company") B.P. Marsh & Partners Plc B.P. Marsh and a private Spanish investor agree to invest €8 million of newcapital in Summa for acquisitions B.P. Marsh & Partners Plc (AIM: BPM), a niche venture capital provider to earlystage financial services businesses, announces that it has agreed to invest afurther €4m in Summa Insurance Brokerage, S.L. ("Summa"), a Madrid basedconsolidator of regional brokerages in Spain, alongside €4m from a privateSpanish investor. In addition B.P. Marsh will be converting €1m of loanscurrently outstanding. As a result of this new investment B.P. Marsh willincrease their stake from 35% to 48.625%, the new Spanish investor will acquire28.625% with Summa's management reducing from 65% to 22.75%. The €8m of new capital will be invested in three tranches of €2.67m, expected tobe made over a three year period to facilitate the next stage of Summa'sexpansion plans across Spain. B.P. Marsh's contribution will be €1.32m pertranche, with the first payment having been made today. As a result theCompany's total commitment will be €6.5m in equity and €1m in loans. B.P. Marshwill own 48.625% of Summa immediately, notwithstanding that it will be investingits new equity over a three year period. B.P. Marsh initially invested in Summa in January 2005, agreeing to provide€1.5m in equity and €1.5m in loans for a 35% shareholding. In January 2007 theCompany agreed to extend the loan facility to €2m. The valuation of theCompany's equity shareholding in Summa as at 31 July 2007 was €1.8m, with theloans being valued at €2m. Since B.P. Marsh's initial investment, Summa have acquired nine brokers, six ofwhich are directly owned through Summa, with three being acquired bysubsidiaries. They are "Aldave" and "Erpa" in Navarra, "JAC" and "Aranguren" inExtremadura, "Asgal" and "Sergal" creating the largest independent broker inGalicia, "Falco" in Comunidad Valenciana, "Citibroker" in Madrid and "Castillo"in Andalusia. Summa will seek to continue to replicate its success in otherregions across Spain and to develop the acquired portfolios with furtheracquisitions. The Group currently manages around €30m in premiums, and the new investment willallow the business to grow more rapidly. Summa made a loss before taxation ofapproximately €120,000 during the 12 months ended 31 December 2006, on anunconsolidated and unaudited basis. Consolidated, but unaudited, managementaccounts show that Summa made a loss before taxation for the 10 month periodended 31 October 2007 of approximately €20,500. Commenting on the investment, Brian Marsh OBE, B.P. Marsh's Chairman, said: "We are delighted that our view that there are significant opportunities forSumma has been shared by a highly respected private Spanish investor. In joiningus as an investor, he has recognised Summa's excellent growth potential. Webelieve that, in many respects, Spain's insurance market today is where the UKmarket was 25 years ago and that those companies that can first establish anational presence, will gain most when valuation multiples start to catch upwith the UK." Miguel del Riego of Summa, commented: "We are delighted with the investment we have received from our partners B.P.Marsh and a Spanish private investor through his investment vehicle "Alvapaco".This will enable us to pursue some exciting opportunities that we have alreadyidentified to create a substantial brokerage group operating across the lengthand breadth of Spain." Further information on Summa is available at the company's website:www.grupo-summa.com - ends - For further information: B.P. Marsh & Partners Plc www.bpmarsh.co.uk Brian Marsh OBE +44 (0)20 7730 2626 Nominated Adviser Nabarro Wells & Co. Limited David Nabarro/Marc Cramsie +44(0) 20 7710 7400 Redleaf Communications (PR to BP Marsh) Emma Kane/Tom Newman +44 (0)20 7822 0200 -ends- Notes to Editors: About B.P. Marsh & Partners Plc B.P. Marsh's current portfolio contains eleven companies. More detaileddescriptions of the portfolio can be found at www.bpmarsh.co.uk. Over the past 18 years, the Company has assembled a management team withconsiderable experience both in the financial services sector and in managingprivate equity investments. Many of the directors have worked with each other inprevious roles, and all have worked with each other for at least five years. Prior to Brian Marsh's involvement in the Company, he spent many years ininsurance broking and underwriting in Lloyd's as well as the London and overseasmarket. He has over 30 years' experience in building, buying and sellingfinancial services businesses, particularly in the insurance sector. Managing Director, Natasha Dunbar, has over 10 years' experience in thefinancial services industry. Having joined the Company in 1994 she was mademanaging director in March 2002. Natasha is responsible for the day to dayrunning of all operational aspects of the business and works closely with BrianMarsh in defining the strategic development of the Company. Francis de Zulueta is the Company's Development Director. With a wide-rangingknowledge of the financial services market, he seeks out, researches andevaluates potential new investments for B.P. Marsh. Following a 23-year brokingcareer with Willis Faber and Aon, among others, he took an active interest inthe mergers, acquisitions and venture capital business of Marsh McLennan. Jonathan Newman is the Group Director of Finance and has 10 years' experience inthe financial services industry. Jonathan advises investee companies throughseveral non-executive board appointments and evaluates new investmentopportunities. Robert King is a Director and Group Company Secretary. He joined the Company inMay 2003 having started his career at PricewaterhouseCoopers. Since joining B.P.Marsh he has taken on responsibility for the Group's legal, compliance andsecretarial functions and played a key role in the flotation of the Company. This information is provided by RNS The company news service from the London Stock Exchange