Chase Templeton has completed the first in a new series of acquisitions with the purchase of Kenilworth-based Health Assist Ltd.
Specialising in company private medical insurance, employee benefits and group risk Health Assist was founded in 2005 by managing director Simon Allen. He decided to sell in order to focus on other business interests and agreed a deal which will add £1.9m in annual premium income (API) to Chase Templeton’s Business division.
“Health Assist has a relatively small but well established and profitable SME client base to which we feel, with our greater resources and expertise, we can offer greater value. In the current economic and regulatory climate it’s really tough for smaller brokers to compete effectively,” commented Chase Templeton’s chief executive officer, Warren Dickson.
He added: “In line with our proven ‘buy and build’ strategy we will look to nurture and embrace Health Assist’s clients and secure additional API and profit through organic growth.”
Mr Allen echoed his sentiments saying: “Founding and building Health Assist has been a thoroughly rewarding experience but the time is right to hand over the reins to a company better placed to both manage the growing regulatory burden and offer the expertise and market influence necessary to best serve my clients going forward. Chase Templeton best fitted the bill, giving me genuine reassurance that my valued clients’ interests will be in safe hands.”
The acquisition is the first in a series Chase Templeton has pipelined for this and next month. Backed by funding from Palatine Private Equity, the company has been actively seeking potential takeover targets, ranging from fully fledged brokers to the books of consultants and IFAs.
In 2013 it sealed no fewer than 12 deals which took turnover to over £12m and saw its business and individual client base grow to over 35,000. Aided by organic growth the company has just smashed through the £100m API barrier and is forecasting further growth of around 10 percent for this year.
“We are close to signing off several other acquisitions of varying size and remain hungry for more.” said Mr. Dickson.
The Health Assist business will be integrated with Chase Templeton’s Business operation which is housed at its Blackburn headquarters. The company, which employs nearly 60 staff, also has an office specialising in individual and family health insurance in Bridgwater, Somerset.