BMS Group, the London-based independent specialist insurance and reinsurance broker, has announced that it has signed an agreement with private equity firm Eurazeo to receive an investment of up to £355 million.
Eurazeo will also acquire up to 34% of BMS’ share capital.
Paris-based Eurazeo and its subsidiaries will join BMS alongside its existing shareholders British Columbia Investment Management Corp. (BCI), Preservation Capital Partners (PCP), and BMS management and employees. Eurazeo and BCI will together be majority shareholders of the company for the next phase of growth. The closing of the transaction is subject to obtaining relevant regulatory approvals.
Final financial information will be disclosed upon completion of the transaction.
Eurazeo, BCI and PCP will support Nick Cook, CEO of BMS, and the rest of BMS’ senior management team in pursuing their proven growth strategy. From 2019 to 2022, revenues at BMS have increased from around £100 million ($120.6 million) to over £250 million ($301.4 million), while headcount has increased by almost 75% to around 900 people worldwide.
BMS said the deal values BMS at £1.75 billion ($2.1 billion)
The BMS management team will all remain in office following the closing of the transaction, and BMS management and employees will continue to be major shareholders in the company.
The investment from Eurazeo and other shareholders is expected to enable BMS to further expand by gaining an international foothold both organically and through an active M&A strategy.
Founded in 1980, BMS is a leading independent reinsurance broker providing comprehensive, customized wholesale, reinsurance and retail insurance solutions, as well as capital markets advisory services. BMS operates in 14 countries with 28 offices around the world (USA, Canada, Latin America, Australia, Europe and Asia).
“We have been exploring specialty insurance and reinsurance markets for some time and we are impressed with BMS’ growth trajectory in recent years, including the significant expansion of the US reinsurance segment,” said Maxime de Bentzmann and Eric Sondag, directors of Eurazeo’s Mid- large buyout team, in a joint statement. “Together with our powerful international network, we are convinced that the group has enormous potential both organically and through mergers and acquisitions around the world.”
“The Eurazeo TBEN focused on culture, agility and global ambition resonates strongly with the BMS values, making Eurazeo a clear partner of choice for our next phase of growth. We are excited to partner with them and leverage their deep industry expertise and transformational growth experience,” said Nick Cook, CEO of BMS, in a statement from Eurazeo.
“As a long-term investor, BCI is pleased to continue our significant investment in BMS, a leading company with a proven track record of strong growth,” said Dave Hong, senior managing director, Private Equity, at BCI, in a statement released by BMS. . “We are excited to partner with BMS management, Eurazeo and PCP in the next phase of this journey, and to continue to create value for our retirement plan and insurance fund clients.”
Jatender Aujla, managing partner, PCP, said: “We are delighted to welcome Eurazeo as a long-term shareholder in BMS alongside PCP and BCI. BMS is one of the largest investments PCP has made to date and thanks to Nick Cook and his outstanding team it has been a phenomenal investment to date with revenue and EBITDA tripling resulting in a 3.5x increase in valuation since our investment in 2019 As a long-term investor, we remain committed to helping the team continue their ambitious growth strategy.”
BMS said it was advised by Evercore, BMS Capital Advisory and Macfarlanes LLP.
Source: Eurazeo and BMS
