Leading French private insurance company, Ardian, will buy JLT’s stake in Milestone, the holding company of Siaci St Honoré, JLT's French associate.
13 February 2015
Jardine Lloyd Thompson Group plc ("JLT"), one of the world's leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services, has today announced that Ardian has agreed to buy JLT's 26.2% stake in Milestone, the holding company of Siaci St Honoré, JLT's French associate. This offer extends to all shareholders.
The transaction will be submitted to Siaci St Honoré's Works Council, as required under French law, and is subject to the signing of a definitive sale agreement by all parties and the approval of antitrust authorities.
Siaci St Honoré is one of the largest providers of insurance broking and employee benefits services in France with a growing international expatriate healthcare business. Today's announcement follows the decision by Siaci St Honoré's shareholders to exit or reduce their holdings and seek a new majority investor to finance the business' expansion plans. Ardian, formerly known as Axa Private Equity, is a leading independent private investment company based in France with assets of US$50bn managed or advised in Europe, North America and Asia.
Siaci St Honoré and JLT have a deep and longstanding specialty focused trading relationship that goes back over twenty years. The two businesses will continue to work together on a significant number of joint ventures and initiatives in areas including Energy, Construction, Marine & Cargo and Credit & Political Risk, as well as service shared international clients on a global basis. Siaci St Honoré will remain the exclusive partner of the JLT International Network in France alongside JLT's other fully owned, associate and network partners in Europe and around the world.
The proposed transaction will create an approximate exceptional gain for JLT of £21 million in 2015, with the net proceeds of £82.1 million being payable in cash and used to repay borrowings. Milestone's (the holding company of Siaci St Honoré) gross assets as at 31st December 2013 were £457 million. Profit before tax for the 12 months to 31st December 2013 was £24 million and its contribution as an associate to JLT was £5 million.
Commenting on the transaction, Dominic Burke, Group Chief Executive of JLT, said: "Ardian is one of the pre-eminent private equity investors in the European market and are well placed to take the business forward. We are pleased that we have been able to secure a very attractive price for our stake while ensuring a continued commercial and strategic relationship with Siaci St Honoré and its people to the benefit of all of our clients and people."
The transaction is expected to complete by the end of April 2015.
-- ENDS --
Dominic Burke, CEO
Tel: +44 (0) 20 7309 8145
Paul Dransfield, Head of Group Corporate Communications
Tel: +44 (0) 20 7528 4933
Tom Burns / Dania Saidam (UK)
+44 (0) 20 7404 5959
Notes to Editors:
About Jardine Lloyd Thompson Group plc
Jardine Lloyd Thompson is one of the world's leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services. JLT's client proposition is built upon its deep specialist knowledge, client advocacy, tailored advice and service excellence.
JLT is quoted on the London Stock Exchange and owns offices in 39 territories with more than 10,000 employees. Supported by the JLT International Network, it offers risk management and employee benefit solutions in 135 countries.
This announcement may contain "forward looking statements" regarding the financial position, business strategy or plans for future operations of the Group. By their nature, forward looking statements involve risk and uncertainty, relating to facts that are beyond the company's ability to control, such as future market conditions. Any such statements in this announcement speak only as at the date of this announcement. The company does not assume any obligation to, and does not intend to, revise or update these forward looking statements except as required pursuant to applicable law.
Head of Group Investor Relations