UK-based specialist insurance firm Tawa has entered into definitive agreement with Norwegian marine insurer Skuld and Bermuda-domiciled Paraline Group to acquire Whittington Insurance Markets (WIM), the London-market operations of Whittington Group.
The management team, led by Stephen Cane, CEO, will become equity investors in the newly formed acquiring company and will continue to manage this successful business that it has built over the past eighteen years.
Marcelli has incorporated to acquire WIM and has entered into an agreement to acquire 100% of WIM. The total cash consideration will be funded through a combination of a bank loan provided by Barclays Bank, preference shares and ordinary shares, which will be subscribed for by the Consortium.
Tawa plc has agreed to invest GBP7m in NewCo, in return for 33% of the preference shares and 30% of the ordinary equity in NewCo.
Tawa CEO Gilles Erulin said this transaction provides the firm with a platform through which to expand the range of services to the Lloyd’s community.
"This is highly complementary with the range of consulting and outsourcing services currently provided through Pro, and we look forward to developing these businesses in tandem with one another,"Erulin said.
The transaction is subject to the approvals of Lloyd’s and the FSA and is expected to close within approximately 90 days.