B.p Marsh Regulatory News (BPM)

23 April 2020

B.P. Marsh & Partners Plc

("B.P. Marsh", "the Company" or "the Group")

Investee Company Update - XPT Group LLC

B.P. Marsh & Partners Plc (AIM: BPM), the specialist investor in early stage financial services businesses, is pleased to announce that investee company XPT Group LLC ("XPT"), the U.S. based specialty lines insurance distribution company, has successfully completed an acquisition.

XPT has acquired 100% of LP Risk, Inc ("LP Risk"), the Houston, Texas, headquartered Managing General Agency ("MGA") and surplus lines Broker, (the "Transaction"). LP Risk also has offices in Dallas and San Antonio (Texas). Founded in 1991 as MD Jensvold & Company, LP Risk was acquired in 2013 by Mr Landon Parnell and rebranded to LP Risk in January 2018.

XPT will be utilising its previously announced debt facility with Madison Capital Funding LLC to acquire LP Risk. As part of the Transaction, Landon Parnell will become a shareholder of XPT, with an approximate 6% shareholding, forming part of the purchase price. Following the acquisition, B.P. Marsh will have a revised shareholding of 29.9% in XPT. 

LP Risk specialises in transportation, hospitality, contractors, marine, energy/oil & gas and manufacturing. With 51 employees, it handles over 4,000 accounts a year on behalf of 350 retail agents and brokers in 18 States. Following the Transaction, Landon Parnell will remain with the business as the President of LP Risk and will become a member of XPT's Executive Committee. 

It is expected that this acquisition will bolster XPT's foothold within its existing markets and add an experienced professional to XPT's Executive Committee. The Transaction furthers XPT's strategy to develop a high-class specialty distribution platform across the US by acquiring niche, profitable businesses.

B. P. Marsh was a founding investor in XPT in 2017, since when it has grown significantly through value accretive acquisitions using its partnership approach. From a standing start, XPT is forecasting Gross Written Premium in excess of $300m and EBITDA of approximately $7m inclusive of this acquisition to December 2020. It has operations across the United States, with a strong presence on the West and East coast and a strengthened footprint in the Midwest now, following its first acquisition of Western Security Surplus Insurance Brokers, LLC in November 2017.

Commenting on the recent activity, the Group's Chief Investment Officer and Nominee Director on the Board of XPT, Daniel Topping, said "LP Risk is a tremendous addition to XPT. Landon Parnell has developed a first-rate speciality insurance business which will further bolster XPT's position. It is a testament to what Tom Ruggieri and his team have achieved so far, that they have been able attract Landon Parnell and his business. We at B. P. Marsh look forward to continuing to work with XPT to help them achieve all their targets."

On the latest acquisition XPT's Chief Executive Officer Thomas Ruggieri stated that "Landon brings with him an impressive track record of success and knowledge that will strengthen our executive committee. We are thrilled to have him and his team join the XPT family". 

Landon Parnell, who will remain as President of LP Risk and will take on a new role of leading XPT's National Property and Casualty Brokerage Division, said "LP Risk has spent many years developing the technical knowledge of our underwriters and the market relationships of our brokers, while making service our main priority. XPT's commitment to launch innovative products while using a modern platform to access new markets will allow us to raise our service level and realize lasting growth".

Notes to Editors: 

B.P. Marsh's current portfolio contains seventeen companies. More detailed descriptions of the portfolio can be found at www.bpmarsh.co.uk. 

Since formation over 25 years ago, the Company has assembled a management team with considerable experience both in the financial services sector and in managing private equity investments. Many of the directors have worked with each other in previous roles, and all have worked with each other for approaching ten years. 

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