News and Press
| Date: | 30th January 2007 |
| Title: | LIVERPOOL VICTORIA TO ACQUIRE BRITANNIA RESCUE FROM CSMA |
| Author: | - |
| Download: | pdf version |
LIVERPOOL VICTORIA TO ACQUIRE BRITANNIA RESCUE FROM CSMA
Liverpool Victoria Friendly Society ("Liverpool Victoria") has announced
today that it has entered into a conditional agreement to acquire Britannia
Rescue from the Civil Service Motoring Association ("CSMA"), subject to
CSMA member approval and regulatory approval.
The key features of the proposed transaction are as follows:
 |
The total value of the transaction is estimated to be approximately £36 million, of which £18 million will be paid in cash to CSMA on completion. The transaction will also release an estimated £8 million of value currently held within the existing underwriting vehicle, which will be retained by CSMA. |
|
Liverpool Victoria will become the preferred provider of roadside rescue and recovery services to CSMA members. |
|
Liverpool Victoria will remain the preferred supplier of insurance and other financial services products to CSMA members. |
|
The transaction is conditional on approval by the members of CSMA at an Extraordinary General Meeting to be held on 20th March 2007. A Circular setting out details of the proposed sale is expected to be posted in February to CSMA members. |
|
The transaction is expected to be completed in early April. |
|
The transaction will be achieved through the acquisition by Liverpool Victoria of the entire issued share capital of Motoring & Leisure Services Limited, the wholly owned subsidiary of CSMA that owns and operates Britannia Rescue. |
Britannia Rescue is the UK's fourth largest roadside rescue provider with approximately 300,000 customers. Britannia Rescue reaches around 50% of breakdowns within 30 minutes and 92% within one hour, one of the best performance records in the industry. In 2006 it was named ‘best buy' for road rescue services for the third consecutive time by the UK's leading consumer research organisation.
The transaction is further evidence of Liverpool Victoria's stated
ambition to grow its general insurance business over the next five years.
This follows the friendly society's acquisition last September of a new
general insurance management team, headed by John O'Roarke, former Managing
Director of Churchill Insurance.
Mike Rogers, Group Chief Executive of Liverpool Victoria, said: "This
acquisition is an excellent opportunity for us to broaden the range of
products we offer to our customers, with the addition of a market leading
and excellent value road rescue offering. We already offer Britannia Rescue
services to our motor insurance customers.
"We plan to invest in the Britannia Rescue brand to build awareness and
market share of direct business. We will also offer greater choice in
the market to brokers and to our existing and potential corporate partners,
as a provider of competitive white-label road rescue services.
"We are also very attracted by the prospect of deepening our financial
services partnership with CSMA, which goes back over 80 years."
Geoffrey Eteson, Chairman of CSMA, commented: "Having considered all the
options, the Association Board decided that an outright sale of Britannia
Rescue was the best option for CSMA, its members, its employees and the
Britannia Rescue business itself.
"The sale of Britannia Rescue to Liverpool Victoria will allow CSMA members
to continue to benefit from roadside rescue and recovery services on preferential
terms from a fellow mutual organisation, which shares CSMA's values of
customer service, product quality and treating members fairly."
Fenchurch Advisory Partners Limited
is acting as financial adviser to Liverpool Victoria. KPMG Corporate Finance
is acting as financial adviser to CSMA.
- Ends -
For further information please contact:
| Liverpool Victoria | CSMA | ||
| Nicola Turner | 01273 744783 | ||
| Corporate Communications Director, Liverpool Victoria | Head of Sales & Marketing | ||
| Malik Karim | 020 7382 2210 | Andrew Clegg | 01293 652032 |
| Fenchurch Advisory Partners Limited | KPMG Public Relations | ||
Notes to editors:
Liverpool Victoria
Liverpool Victoria is the UK's largest friendly society and has more than
2.5 million members and customers, who trust it to look after over £8
billion on their behalf. Liverpool Victoria provides a broad range of
financial services including savings, investments, life insurance, home
and motor insurance to customers throughout the United Kingdom. Liverpool
Victoria provides motor and household policies to over 1.2 million policyholders
and generated £368 million of gross written premiums in the year
to 31 December 2005.
CSMA
Since its foundation in 1923, CSMA has developed to become the UK's largest
private home, motoring and leisure association. Being a non-profit motivated,
mutual organisation means that CSMA is owned and run by its members, for
its members, and any money made is invested back into member benefits.
CSMA offers a wide range of benefits to its members that are negotiated
exclusively for CSMA, and developed with the aim of helping members to
get more for their money, and more out of life.
Britannia Rescue
Britannia Rescue was founded in 1983 and is the 4th largest provider of
roadside rescue and recovery services in the UK. It employs over 70 people
in its operation centre in Huddersfield. Britannia Rescue operates around
the clock through a network of over 3,000 specialist roadside technicians,
all of whom are PAS 43 accredited. Developed through the British Standards
Institution, PAS 43 sets out the minimum standards required for the safe
working of vehicle breakdown and recovery operators. The aim is to improve
the safety of customers and employees of the breakdown operator in breakdown
and recovery situations.
The majority of Britannia Rescue's customers are acquired through affinity
partnerships with organisations such as CSMA and trade unions. Britannia
Rescue also has a strong retail brand and distributes direct to the public
through its call centre in Huddersfield and online via www.britanniarescue.com.
Britannia Rescue offers three different levels of cover, all of which
include nationwide recovery, free caravan and trailer cover, and assistance
with windscreen and tyre replacement. Britannia Rescue's high standards
of service, systems and professionalism are supported by its ISO9002 and
'Investor in People' awards.
Fenchurch Advisory Partners Limited,
which is authorised and regulated by the Financial Services Authority
for investment business activities, is acting for Liverpool Victoria as
financial adviser in relation to the matters described in this announcement
and is not acting for any other person in relation to such matters. Fenchurch
Advisory Partners Limited will not be responsible to anyone
other than Liverpool Victoria for providing the protections afforded to
its clients or for providing advice in relation to the contents of this
document or arrangement referred to herein.
KPMG Corporate Finance, a division of KPMG LLP which is authorised and
regulated by the Financial Services Authority for investment business
activities is acting for CSMA as financial adviser in relation to the
matters described in this announcement and is not acting for any other
person in relation to such matters. KPMG Corporate Finance will not be
responsible to anyone other than CSMA for providing the protections afforded
to its clients or for providing advice in relation to the contents of
this document or arrangement referred to herein.