PSC Insurance buys Alliance Insurance for $24.5mn
SYDNEY, AUSTRALIA: PSC Insurance Group Limited has entered into a binding agreement to acquire the broking business trading as Alliance Insurance, a news release said.
PSC will be purchasing the insurance broking portfolio and other key business assets of Alliance from Alliance Insurance Broking Services Pty Ltd, with the business continuing to operate out of its existing premises.
The Alliance Insurance acquisition is expected to generate an incremental EBITDA of greater than $3.0 million in its first twelve months.
The purchase price is $24.5 million, payable in three tranches as follows:
- 75.0% of the purchase price ($18.40 million) payable in cash upon completion (First Tranche).
- 12.5% of the purchase price ($3.07 million) payable in cash within 90 days following the 1st anniversary of completion, with this amount subject to a rise and fall adjustment dependent on the revenue of Alliance during the 12 months period post completion (Second Tranche).
- 12.5% of the purchase price ($3.07 million) payable in cash within 90 days following the 2nd anniversary of completion, with this amount subject to a rise and fall adjustment dependent on the revenue of Alliance during the 12 months period post the first anniversary of completion (Final Tranche).
The acquisition of Alliance Insurance is subject to a number of customary conditions, and the acquisition is expected to close within the next 4 weeks.
The cash component of the First Tranche will be funded via a combination of existing capacity within the Group’s debt facilities and group cash.
“We are delighted to welcome the Alliance team to the PSC Group. We look forward to growing the business with the team and working closely with them to provide the continued high levels of service to the clients of Alliance” commented Mr Tony Robinson, Group Managing Director of PSI.
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17 Aug, 2:50 pm GMT+10 ·Disclaimer
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