Charles Taylor PLC Acquisition (9346F)
26 February 2015 - 6:04PM
UK Regulatory
TIDMCTR
RNS Number : 9346F
Charles Taylor PLC
26 February 2015
Date: 26 February 2015
On behalf of: Charles Taylor plc ("Charles Taylor" or the
"Company")
Embargoed until: 0700hrs
Charles Taylor plc
Acquisition of the operating companies of SC Management,
independent third-party manager of The Strike Club
Charles Taylor plc announced today that its subsidiary Charles
Taylor Vesta Limited has entered into a conditional agreement to
acquire three of the SC Management group's ("SC Management")
operating companies from its shareholders, SCE Establishment
Liechtenstein and S.C. Management (Bermuda) Ltd (the
"Acquisition").
SC Management is the independent third-party manager of The
Strike Club group ("The Strike Club"), a group of mutual insurance
companies. In connection with the Acquisition, Charles Taylor &
Co (Bermuda) will take over the management of The Strike Club on
completion of the Acquisition under the terms of a new management
contract with The Strike Club (the "Management Contract") for an
initial term that will expire on 31 January 2019. The Acquisition
and the Management Contract are part of Charles Taylor's strategy
to achieve growth by seeking management contracts from mutual
insurance companies and associations.
The Strike Club is a marine mutual insurance group that is fully
owned by its members. It is the only dedicated mutual insurer
covering the running costs of vessels delayed by strikes, shore
delays, collisions, groundings and other incidents outside an
owner's or charterer's control. In addition to mutual delay cover,
it also offers war and loss of earnings cover on a fixed premium
basis.
Charles Taylor will acquire S.C. Management (Luxembourg) S.A.,
SC Services (Monaco) SARL and SC Management SAM through Charles
Taylor Vesta Ltd which is 100% owned by Charles Taylor Overseas
Limited. The Acquisition and Management Contract are subject to
regulatory approvals. The consideration for the Acquisition is
US$2.44m in cash, spread equally over 10 years from 1 February
2016, subject to a completion account adjustment. The consideration
is to be met from existing cash resources.
The employees of the acquired companies will join the Charles
Taylor group on completion, and Bill Milligan, Chief Executive
Officer of SC Management, will continue to manage and develop The
Strike Club with Charles Taylor.
The gross assets of the acquired companies were US$1.13m and net
assets US$0.73m, based on 31 January 2014 accounts. SC Management
achieved net profits of US$0.63m in the year to 31 January 2014.
The transaction is expected to be modestly earning enhancing in
2015 after transaction costs.
Johan Hagn-Meincke of Clipper Group A/S, President and Chairman
of The Strike Club group said: "We aim to build on The Strike
Club's existing excellent reputation for delivering high levels of
service to its members backed by technical expertise and financial
strength, while preserving its mutual ethos and ownership
structure. We are confident that, working with Charles Taylor's
Management Services team along with Bill Milligan and his team, the
Strike Club will go from strength to strength.
"Charles Taylor has a long history and deep expertise of
managing mutual insurance companies which stretches back over 130
years. We believe the resources and expertise that Charles Taylor
can bring to the management of the Club will be of great value as
we expand the Club's capabilities and operations."
David Marock, Group Chief Executive Officer, Charles Taylor
said: "We have been actively seeking opportunities to grow our
Management Services business. This acquisition provides us with the
opportunity to manage another well-regarded mutual insurance
company, The Strike Club group, and is an important step in
implementing our wider growth strategy.
"The acquisition and associated management contract would not
have been possible without the full support of the board of The
Strike Club. I would like to thank Johan Hagn-Meincke and the rest
of the Club board for selecting Charles Taylor to manage the Strike
Club and support its long-term success."
-ENDS-
For further information:
Charles Taylor plc
David Marock, Group Chief
Executive Officer
Mike Lord, Group Communications Via Redleaf Polhill
Director
Redleaf Polhill ct@redleafpr.com
Rebecca Sanders-Hewett
Charlie Geller
David Ison 020 7382 4730
Notes to editors
Charles Taylor plc is a leading provider of professional
services to clients across the global insurance market. The Group
has been providing services since 1884 and today employs over 1,000
staff in 61 offices spread across 26 countries in the UK, the
Americas, Asia Pacific, Europe and the Middle East.
The Group offers services, principally on a fee-based model and
operates through three businesses - Management, Adjusting and
Insurance Support Services. Charles Taylor also owns insurers,
creating value through select acquisitions and operational
efficiency.
Further information is available at www.ctplc.com
Statements made in this announcement that look forward in time
or that express management's beliefs, expectations or estimates
regarding future occurrences are "forward-looking statements"
within the meaning of the United States federal securities laws.
These forward-looking statements reflect the Group's current
expectations concerning future events and actual results may differ
materially from current expectations or historical results.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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