Epiris sells Davies Group for £90 million

POSTED 30 January 2017

Epiris is pleased to announce the sale of leading insurance claims service provider Davies Group (“Davies”) to HGGC, the US based private equity firm, for £90 million.

Electra Private Equity PLC has received proceeds of £45 million from the sale, an uplift of £2 million or 4% on the valuation of its investment in Davies at 30 September 2016, equivalent to an increase in NAV per share of 4p.

Davies is a multi-award winning insurance claims service provider, delivering third-party administration (“TPA”) and specialist technical services to insurance intermediaries, the Lloyd’s market, UK and global insurers and large self-insured businesses. The company manages more than 170,000 claims each year, handling in excess of £1.2 billion of annual claim cost across property, casualty, motor and niche insurance classes. In addition to its TPA services, it provides integrated technical services including loss adjusting, surveying, fraud detection, and supply chain solutions.

Epiris led the £61 million acquisition of Davies in 2011. Since then Epiris has delivered its transformation strategy through management change, M&A and operational improvement. The business is now significantly larger and much better positioned than at entry.

Alex Fortescue, Managing Partner at Epiris, said:

“We are delighted to have brought the investment in Davies to a successful conclusion. Dan and his team have done a tremendous job in transforming the business into a growing and successful TPA.”

Dan Saulter, CEO of Davies Group, said:

“It has been great to work with Epiris to develop and transform the Davies business. It has been hard work, but I am very proud of the business that we have created with Epiris and look forward to working with HGGC to take it to the next stage.”

Alex Fortescue and Nicola Gray are responsible for the investment and the exit of Davies Group.

Epiris refers to Epiris Managers LLP acting on behalf of its client Electra Private Equity PLC.

Ends

This is not an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or an exemption from registration. Any investment in any Epiris fund shall be qualified in its entirety by the terms and conditions of that fund’s offering materials including any prospectus.

For further information please contact:

Andrew Honnor, Matthew Goodman, Matthieu Roussellier, Greenbrook Communications
+44 (0)20 7952 2000

Nicholas Board and Andrew Kenny, Epiris
+44 (0)20 7306 3902

Note to Editors:

About Epiris LLP

Epiris is a top-decile private equity fund manager*.

Epiris, together with its predecessor firms, has managed the business and affairs of Electra Private Equity PLC, a listed private equity investment trust, for three decades. Epiris has also managed private equity investment programmes for pension funds, financial institutions and family offices. During this time Epiris has invested in excess of £5 billion in over 200 deals. As at 30 September 2016, the firm had funds under management of 
£2.2 billion.

Epiris’s flexible investment strategy has allowed it to invest broadly across the private equity market, including in buyouts and co-investments, secondaries and debt assets.

In respect of buyouts and co-investments and loan-to-own debt investments made since 2011, Epiris has delivered a gross IRR of 37%**.

For further information please visit www.epiris.co.uk.

Issued by Epiris Managers LLP which is authorised and regulated by the Financial Conduct Authority.

* Refers to the 2009 and 2012 investment pools comprising Buyout & Co-investment, Secondary and Debt investments managed on behalf of Electra Private Equity PLC; comparator data supplied by Preqin.

** As at 30 September 2016 adjusted for subsequent investments and realisations. Gross IRR does not reflect adjustments for investment management and administration costs. Past performance is no guarantee of future results.