Australia’s AUB Completes Acquisition of Lloyd’s Broker Tysers from PE Firm Odyssey

September 30, 2022

Australia’s AUB Group Ltd. (AUB) announced it has completed its acquisition of leading Lloyd’s wholesale broker Tysers from Odyssey Investment Partners.

The acquisition, which was first announced in May 2022, has a purchase price of A$880 million (US$570.3 million) with a potential additional deferred consideration of up to A$170 million (US$110.2 million), dependent on Tysers’ achievement of agreed revenue growth targets.

Launched in 1985 and headquartered in Sydney, AUB Group comprises insurance brokers and underwriting agencies operating in approximately 520 locations across Australia and New Zealand.

In accordance with the terms of the acquisition and as previously announced, AUB confirmed that it has now issued 9,018,974 new shares to Odyssey. The new shares will be escrowed for a 24-month period.

AUB’s CEO and Managing Director Mike Emmett and Tysers CEO Clive Buesnel

AUB has drawn down A$598 million (US$387.5 million) of its new A$675 million (US$437.4 million) multi-currency debt facility. AUB said it expects leverage to reduce over the next 12 months.

“We are very pleased to welcome the Tysers team. Given Tysers’ position as a leading specialist wholesale insurance broker in the largest insurance market in the world, we are excited in the step change Tysers will bring to AUB in terms of capturing further economics in the insurance broking value chain, accelerating scale in AUB Agencies and supporting our clients with international placement needs,” according to AUB’s CEO and Managing Director Mike Emmett.

“I have known Tysers and its executive team for an extensive period of time and AUB has been working with Tysers for many years providing our clients access to Lloyd’s market for specialist insurance,” he added.

“I have always been very impressed with the quality of the franchise, the knowledge and expertise of the team, and its deep client relationships. The acquisition is not only strategically aligned and financially compelling, but strengthens our operational platform and delivers material scale,” Emmett said. “We look forward to optimising Tysers’ contribution as part of the AUB Group, a successful integration and delivering on the expected synergies.”

The acquisition of Tysers (Bermuda) Ltd. requires the approval of the Bermuda Monetary Authority but AUB this approval was not obtained sufficiently in advance of the planned date for completion of the acquisition. As a result, the parties have agreed to defer the acquisition of Tysers (Bermuda) until regulatory approval is received.

“AUB is the perfect partner to allow Tysers to continue our proud history and support our growth ambitions. The strategic and cultural alignment is clear, and we are excited about executing on future opportunities together,” commented Clive Buesnel, Tysers CEO, in a statement in May when the deal was first announced.

Source: AUB Group

Topics Mergers & Acquisitions Agencies Excess Surplus Australia Lloyd's

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