11 July 2006 Gresham Private Equity backs management buy-out of leading insurance broker Giles Giles poised for accelerated growth 11 July 2006 – Gresham, the UK mid market private equity specialist, today announces that it has backed Chris Giles and the management in the management buyout of Giles Insurance Brokers Limited (“Giles”), one of the UK’s fastest growing commercial insurance brokers, in a deal valued at £45m. Giles’ strategy is to continue to build its regional network and to take a leading role in the consolidation of the fragmented commercial insurance market. Giles has an aggressive organic and acquisition led growth strategy. As part of the transaction Giles have also secured access to additional funding lines to make further acquisitions. The company aims is to double the size of the business in the next two to three years, targeting premiums of £250m. It also intends to increase its areas of specialisation which already account for 50% of turnover. Giles are aiming for an IPO within the next three years. Giles, headquartered in Glasgow, operates through a national network of 17 branches. They are a newly accredited member of Lloyds of London and will be seeking to expand their presence in the London market through developing this relationship. Giles has sector specialisms in the provision of commercial insurance cover for recruitment, leisure, construction, charities, PI and motor trade. Giles recently acquired the £16.5m premium business MCIS/BJK (income of £2.5m) who specialise in the charity sector. This takes the businesses premium income up to £90m. The company has secured the services of Jim Faulds as Non-Executive Chairman. Founder of the Faulds Group and Chairman of various companies such as Wood Mackenzie and Newhaven, Jim has been successfully involved in previous MBO transactions. Chris Giles, Chief Executive Officers of Giles, said “We intend to rapidly build the business through a mix of organic growth and through acquisitions. Over the past few years we have invested heavily in the infrastructure of Giles and we will continue to do so. This, along with Gresham’s investment, should create the right platform and environment to attract the best people and high quality acquisitions. We are delighted to have partnered with Gresham who we believe will support us as we implement our growth strategy.” The deal was led from Gresham’s Manchester office by Director Andy Marsh who said: “We are delighted to be backing Chris Giles and his management team to expand Giles and fulfil their ambition to create a national commercial insurance broker with market leading specialisms. We looked at a number of investment opportunities in this market and Giles emerged as the clear leader. The ability to build the business both organically and through additional acquisitions is one of the major attractions of this opportunity.” Andy Marsh will join the board from Gresham. Howard Posner, ex MD of HBOS General Insurance business will also join the board at completion. For more information please contact: Kate Champion Sarah Gestetner Gavin Cameron Marketing Manager Director Account Director Gresham LLP Citigate Dewe Rogerson The BIG partnership One South Place 3 London Wall Buildings 5 Park Circus Place London London Wall Glasgow EC2M 2GT EC2M 5SY G3 6AH T: +44 (0)20 7309 5036 T: +44 (0)20 7282 2920 T: +44 (0)141 333 9585 Notes to editors: About Gresham: Gresham specialises in investing in UK mid-market deals typically valued up to £100 million and has expertise in the Business & Support Services, Consumer, Financial Services, Healthcare/Pharmaceuticals and Industrial Products sectors. Gresham focuses on management buy-outs from its offices in London, Birmingham and Manchester. This facilitates direct access to the main centres of UK buy-out activity and provides strong local knowledge and a network of contacts essential to sourcing new deals and effectively working with management teams across the UK. Their dedicated portfolio team works closely with management teams in dealing with key commercial and financial aspects of the business to enhance the value of an investment. Further information about Gresham and its investments is available from www.greshampe.com. About Giles: Under the direction of Chris Giles, Giles Insurance Brokers Ltd has been transformed from a community business into one of the UK’s leading independent insurance brokers. The company now employs in excess of 300 people in 17 locations across the UK and has pursued an aggressive expansion strategy both through organic growth and an ambitious acquisition programme, completing 23 acquisitions over the last 10 years. The company was formed in 1967 by Chris Giles’ father and has built a reputation for offering an informed and professional service to industrial, commercial and personal clients throughout the UK. Chris and his brother Nick acquired the business in 1995, transforming it from a community business into Scotland’s largest independent commercial insurance broker. Chris Giles was appointed chief executive officer in 2001. Advisers: Andy Marsh (Manchester), Andy Tupholme (Manchester) and Neil Scragg (London) led the deal from Gresham. Gresham was advised by DLA (Neal Shepherd, Darryl Cooke and Nick Roome). Deloitte (Ian Steele and Craig Campbell) provided the due diligence, and also advised the Giles management team.
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