Redde acquires FMG for £43.2m

Redde has agreed to acquire the FMG group of companies for around £43.2m. The acquisition is subject to regulatory approvals and completion is expected within three months. The FMG Group, which is based in Huddersfield, is being acquired from its management and a number of funds managed by Leeds-based Endless on a debt-free basis and assuming a “normalised level” of working capital.

In a statement, Endless said: “This acquisition sees private equity house Endless and Nick Brown, who founded the business in 1986, realise their investments much earlier than expected. The FMG management team, led by executive chairman Andrew Cope, will be reinvesting a significant part of their equity proceeds as part of the transaction and will remain on board to help drive the business under Redde’s ownership. Andrew Cope will then continue

as a non-executive director, advising on strategy, supporting the management team and helping to develop the business.”

Martin Ward, the chief executive of Redde said: “The addition of FMG to the Redde group supports our strategic objective of growing earnings on a sustainable basis and broadening the scope of services we offer which are related to our core businesses. FMG is a quality business and has a strong reputation in its fields of business for serving its customers well. We have worked together in the legal services arena for a number of years and this acquisition is a further step in strengthening Redde’s proposition to its customers as we build on our recent successes”.

Mr Cope said: “This is a truly exciting day in the long history of FMG. We strongly believe that marrying FMG’s people, knowledge and innovative capacity to Redde’s long term investment and commitment to the vehicle claims industry will result in an outstanding service and technical proposition for our customers today, tomorrow and well into the future.”

The shareholders of FMG were advised by Deloitte, led by Martin Jenkins and David Frith, Squire Patton Boggs, led by Jonathan Jones and Hannah Kendrick and KPMG, led by Steve Heath.

Mr Jenkins said: “This transaction continues the incredible track records of Endless as a distinctive and innovative private equity investor, and of Andrew Cope, as one of Yorkshire’s most prominent and successful entrepreneurs.”