Jardine Lloyd Thompson Group (JLT) has agreed to acquire Hayward Aviation Limited from Towergate Insurance for a cash consideration of £27 million.
Hayward is an international specialist aviation insurance broker that arranges insurance for regional airlines, small commercial fleets of fixed wing aircraft and helicopters, individual jets, light aircraft and helicopters owned by private clients.
For the year ended 31 December 2013, Hayward generated revenues of £10 million and profit before tax of £3 million.
The acquisition will be financed from JLT’s cash resources and debt, and is expected to be “earnings accretive” in the first full year following completion.
Aviation is a core specialty for JLT, which has established positions in the airline and space markets in the last few years.
Dominic Burke, group chief executive of JLT, said: "This acquisition provides a unique opportunity to bring together one of the best general aviation brokers in the world with JLT’s market-leading aerospace capabilities and international network to create a strong platform for growth in one of our core areas of specialisation.”
Guy Holland-Bosworth, chief executive of Hayward, commented: "JLT offers our clients and our people a fantastic opportunity to join a company that shares our specialty-focused strategy and our client-first and entrepreneurial culture.”
“As part of JLT, we are now able to fulfil our ambition of building a truly global general aviation business."
The acquisition is subject to regulatory approvals and other formalities and is expected to complete in early 2015.
Integration of the business will take place in 2015 and the Hayward brand will be retained.
