We are delighted to announce the boards of Markel Capital Holdings Limited, a wholly-owned subsidiary of Markel Corporation, and Abbey Protection plc have reached agreement on the terms of a recommended cash acquisition of Abbey Protection.
Under the terms of the acquisition, Abbey Protection Shareholders will be entitled to receive 115 pence in cash for each Abbey Protection Share, valuing the entire issued and to be issued share capital of Abbey Protection at approximately £116.5 million.
Once the acquisition has been finalised, it is intended Abbey Protection will be managed by Markel International, a division of Markel Corporation. As a specialist provider of legal and taxation related professional fees insurance products and services for UK small to medium enterprises, the Boards of Abbey Protection and Markel International believe that Abbey Protection provides a complimentary fit with Markel International, enhances its product range in the UK and improves Markel International’s reach within the UK retail market.
Commenting on the acquisition, William Stovin of Markel International said:
‘Our financial and underwriting strengths, and our established relationships with UK SME customers, fit well with the Board of Abbey Protection’s objectives for the further development and expansion of their business. From our first meeting it was clear that there was a strong cultural fit between our organisations and we are looking to working with Abbey Protection management to make the best use of resources we bring to support the continued development of this high quality business.’
‘It’s our expectation that Abbey Protection will continue to operate under its own successful brand, while our capital and risk appetite will enable it to retain more underwriting risk and to explore growth initiatives currently beyond its reach. Abbey Protection will be a significant addition to our UK retail business.’
Commenting on the acquisition, Tony Shearer, Chairman of Abbey Protection, said:
‘As Abbey Protection looks to the next stage of its growth strategy, the Board of Abbey Protection believes that now is the right time for a change of ownership. Accordingly, the Board of Abbey Protection believes that the acquisition by Markel gives Abbey Protection an exciting opportunity to build a platform for further growth through Markel Corporation’s scale and financial strength, and Abbey Protection’s specialist products and distribution network. Markel Corporation is a highly regarded insurer with an international reputation and, like Abbey Protection, has a strong track record in providing specialist insurance products to SMEs. The Board of Abbey Protection believes that the acquisition represents the most attractive outcome for our shareholders and will enhance Abbey Protection’s business in the interest of our customers, partners and employees, thus securing the Group’s long-term future.’
A copy of the full announcement will be available, free of charge, on Abbey Protection’s website at www.abbeyprotectionplc.com and on Markel International’s website at www.markelinternational.com by no later than 12 noon (London Time) tomorrow.