Gresham Private Equity backs management buy-out of leading insurance by ijk77032

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									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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