Esure agrees £1.2bn takeover by private equity firm Bain Capital

( via– Tue, 14 aug 2018) London, Uk – –

The firm says its board has agreed to recommend Bain's formal 280p-a-share offer to investors, who must vote to approve the deal.

Esure, the insurance firm that owns the Shielas' Wheels brand, has agreed to a £1.2bn takeover by private equity firm Bain Capital.

In a statement, esure said its board had agreed to recommend Bain's formal 280p-a-share offer to investors, which represents a 37% premium to last week's share price.

The firm's largest backers, Sir Peter Wood and Toscafund, which hold around 31% and 17% of esure respectively, have given their backing to the deal.

A total of 75% of shareholders must vote to approve the acquisition, which would see esure taken private and delisted from the London Stock Exchange.

Sir Peter, the group's chairman, who stands to pocket around £370m from the sale, said: “It is a great outcome for shareholders, for the company, and for customers.

“Since its IPO in 2013, esure has grown to nearly 2.5 million in-force policies, delivered more than £800m of annual gross written premiums, and returned just under £300m to shareholders in dividends as well as the considerable value delivered to shareholders through the demerger of GoCompare.

“As a private company and with Bain Capital's backing, esure will be able to invest behind the innovation required to fully realise the opportunities in this market.”

He will continue as chairman following the takeover.

Esure also announced its results for the first half of the year, which showed pre-tax profit fell by 20% from £45.1m to £36.1m in the six months to 30 June.

The company said its profits were dented by a £14m charge from adverse weather-related claims in its home and motor accounts.

It blamed the drop on a hit from the so-called “Beast from the East” which brought snow and icy temperatures in February and March and flash flooding in May.

Esure provides insurance products to more than two million drivers, homeowners, pet owners and holidaymakers across the UK.