MDS Holdings, the Iberian and Latin American insurance broking group, announced that it has acquired a “50 percent stake in Coral, the former Portuguese in-house broker of Salvador Caetano Group, the largest automotive business in the Iberian market.
Following the completion of the transaction Coral has been rebranded as MDS Auto. It is the “first broker in Spain and Portugal dedicated to providing cover for the automobile sector and related industries,” said the bulletin.
“MDS Auto’s two offices and 16 staff will now work closely with the existing MDS team to place a wide range of insurance cover including private motor, auto retail sales, warranty, auto repair and fleet.
“It is anticipated that MDS Auto’s turnover will be approximated €3 million [$4.22 million] in 2011. Plans are also in place to quickly grow the business through both wining a greater market share and introducing new specialist products and IT tools.”
MDS’ bulletin also noted that the “Salvador Caetano Group, among other partner costumers, will continue to place and sell MDS Auto’s insurance programs through their auto costumers (businesses). Created in 1946 as bus body builder, the Group is now a well-known and internationally reputed bus manufacturer comprising of more than 150 companies with a turnover of €2.0 billion [$2.815 billion].
“Salvador Caetano employs more than 6,800 workers and is the largest automobile group of the Iberian Peninsula. In 1968 it became the importer of Toyota vehicles into Portugal and later BMW from 1983. More recently it has expanded into new information technology and invested significantly in building its multi-brand automobile retail business.
José Manuel Fonseca, Chairman of MDS Holdings commented: “Taking a stake in Coral marks a considerable milestone in the development of MDS. Having very successfully transformed our own business from an in-house operation into a leading insurance broker we now relish the opportunity to work with a similar business to build the market leading automotive specialist in Portugal.”
Source: MDS Holdings
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