Private equity house JC Flowers has sealed a deal to buy London market brokers SSL and Endeavour as it hints at further acquisitions.
SSL, a specialist marine broker, and Endeavour, another Lloyd’s broker and delegated authority expert, will be merged ahead of the deal’s completion, which is expected by the end of this quarter.
According to sources, the estimated deal value for SSL could be as high as £27mn ($36mn) and Endeavour at £22.5mn ($30.3mn) depending on future performance.
The combined entity will be called SSL Endeavour and the leadership teams of both companies will remain in place, a statement said.
The structure will see Roger Spicer stay at the helm of SSL while David Lawrence will remain CEO of Endeavour.
The newly-merged film will be co-chaired by SSL founder Andrew Sturdy and Endeavour chairman Chris Giles.
Marine broker SSL was founded in 2003 and has a “substantial” book of fleets, the statement said.
Headquartered in London, it employs 42 people and also places cash in transit, financial institutions and political risk cover.
Endeavour, meanwhile, has 44 employees and places delegated authority business from North America and Europe into Lloyd’s and London markets.
The statement said Endeavour and SSL had complementary books of business and skills.
“The merger provides a strong and efficient platform from which to grow a dynamic, client focused Lloyd’s broker whilst exploring further acquisition opportunities in the insurance market,” it said.
JC Flowers vice president Jonathan Cox said: “The merger creates a highly complementary and entrepreneurial business from which to expand, both organically and through acquisition.”
SSL’s Spicer said: “JCF has successfully agreed two deals in the Lloyd’s market simultaneously which is a remarkable feat.
“They have brought together two successful companies with no overlap of business,” he went on.
“I believe that SSL Endeavour will be able to provide a broader offering to its combined client base.”
Endeavour founder Lawrence said: “With the backing of JCF, SSL Endeavour’s focus on growth and modernisation initiatives will make it very well placed for future expansion, both organically and through acquisitions.”
This publication revealed that SSL had entered into exclusive sales talks back in January.
The firm – which was founded by ex-Willis broker Andrew Sturdy in 2003, together with Roger Spicer and Eddie Leigh – reported revenues of £9.1mn for the year ending March 2017, up 11 percent on the previous year. Pre-tax profits were also up from £1.37mn to £1.41mn.
According to sources Sturdy owns circa 80 percent of SSL.