News

14
Sep

ADVICE GROUP JELF BOUGHT FOR £258M

AIM-listed advice group Jelf has been acquired by insurance broker Marsh, a subsidiary of US consultancy Marsh & McLennan Companies, for around £258m.

Jelf provides advice to businesses and individuals on insurance, healthcare, employee benefits and financial planning. From 37 offices throughout the UK, it says it works with 69,000 corporate clients and 45,000 individuals.
An announcement from Marsh said that they will pay 215 pence in cash for each share and that they had received irrevocable undertakings to vote in favour of the acquisition in respect of 60.6% of the existing issued ordinary share capital of Jelf and all of the Jelf non-voting shares.
Jelf first admitted it was talking to Marsh on 19th August.
Marsh’s CEO for UK & Ireland Mark Weil said: “Jelf and Marsh are highly complementary businesses, both in terms of business and values. This transaction underlines Marsh’s commitment to setting the standard for providing advice and products that meet the risk, financial services and insurance needs of individuals and companies of all sizes across the UK. We have the highest regard for the management and team at Jelf and expect they will be a huge asset as, together, we provide the market-leading suite of solutions to our clients. We look forward to welcoming Alex and his team to Marsh.”
CEO of Jelf Group plc Alex Alway said: “I am extremely proud of the business that we have built since Jelf was founded in 1989. Every one of our colleagues has contributed to our deserved reputation for developing long-lasting, trusted adviser relationships with our clients. As our clients’ needs have continued to evolve, the Board and executive management team have given much thought about how best we meet their growing expectations. At the same time, we want to ensure that our colleagues are given the greatest opportunities to develop their careers. I am confident that this transaction is great news for our clients and colleagues alike.”
The deal has attracted attention from across the sector. Rob Stavrou, Sales & Marketing Director at Sequel, the insurance technology solutions provider, commented“Marsh’s acquisition of Jelf continues the trend of mega-mergers we are seeing in today’s global insurance market.  Combined, the two brokers will benefit from widened global reach, the ability to place increasingly complex specialist risks, financial firepower, access to a much wider talent pool and significant IT/operational efficiencies”
“However, we can also expect to see new broking start-ups spinning out of the newly-merged entity, as established broking talent decide to use this opportunity to go it alone.”
Story sourced from IFA Magazine (www.ifamagazine.com)