More than three months after revealing its £165 million swoop for Swinton (Holdings) Limited, The Ardonagh Group has now completed the deal following receipt of regulatory approval.
In a New Year’s Eve announcement, Ardonagh also said it has exchanged its US$235 million 8.625% senior secured temporary notes due 2023 for an equivalent amount of new notes due the same year. The brokerage group said the latter were issued pursuant to its existing senior secured notes indenture dated June 20, 2017.
The exchange of notes is part of the transaction to acquire Swinton from French mutual insurance group Covéa.
“A portion of the temporary notes proceeds, originally deposited in escrow pending regulatory approval of the Swinton acquisition and, separately, the acquisition of Minton House Group Limited, Health and Protection Solutions Limited, and Professional Fee Protection Limited, as announced on October 29, 2018, were released in order to complete the Swinton acquisition,” explained Ardonagh.
“The remaining escrowed proceeds will be released upon the completion of the acquisition of Minton House Group Limited, Health and Protection Solutions Limited, and Professional Fee Protection Limited.”
In the year ending December 31, 2017, Swinton reported in excess of one million customers and £168 million in turnover. The UK personal lines insurance broker employs more than 1,500 people.
Ardonagh chief executive David Ross previously described the Salford-headquartered firm – which offers insurance products including car, home, bike, van, and taxi, as well as breakdown cover – as “the perfect addition” to the group’s portfolio.