INSURANCE group Oval, which employs 200 staff in Yorkshire, yesterday revealed that it was poised to make further acquisitions after signing an agreement with a group of leading UK banks for an enlarged £115m senior banking facility.
The new facility was arranged by Barclays and Lloyds TSB and includes "substantial commitments" from The Royal Bank of Scotland and HSBC.
Oval said it was pursuing a strategy of organic growth, combined with acquisitions of regional broking and fi
nancial advisory businesses.
Last month, Oval bought Powell Insurance Brokers in Liverpool and Williams Insurance Brokers in Wales.
Oval was started in Wakefield as R P Hodson in 1965 by the father of Philip Hodson, who is Oval's chief executive.
Since October 2003, the group has been turned into a national business, by acquiring regional brokers and financial services companies. So far, 31 companies have joined the group. Oval has more than 1,000 employees across the UK and annualised group revenues of more than £100m.
It has offices in Wakefield, Leeds, Huddersfield and Sheffield, which employ more than 200 people in insurance and financial services.
Yesterday, Oval revealed it had a healthy pipeline of potential acquisitions, but stressed that it would proceed with caution as long as the economic environment remained uncertain.
Mr Hodson, said: "We are delighted with the new facility agreement and to be working with such a strong group of banks, and remain committed to building a substantial, independent, client focused insurance and financial services business.
"The new facilities, in addition to the substantial debt and equity funding already secured over recent months, will help us to deliver that vision."
Tony Cook, from Barclays Bank, said: "Oval has a proven status as a major force in the insurance broking market reflecting the success of their buy and build strategy over the past five years, during which time they have integrated more than 30 acquisitions.
"This came at a time when there was significant uncertainty in the debt markets, but the arrangement of this new £115m facility is testament to the continuing availability of debt funding to good quality corporates and the ability of the local market to deliver financial arrangements."
Oval's acquisitions have included Otley-based Barfield Associates which joined the group in April 2005 and Sheffield-based Hart Owens, which was bought in October 2007.
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