PSC Insurance Group has made an announcement on acquiring two UK-based commercial brokers for A$66 million.
As a part of its expansion process, the acquisitions of the group are expected to generate a combined sum of A$7.1 million through incremental annual pre-tax earnings, amortization, taxes, and depreciation.
In a statement to the Australian Securities Exchange, the Melbourne-based broker will pay $38 million for Abaco Insurance Brokers and $28 million for Trust Insurance Services.
Trust Insurance Services is a commercial insurance broker working for landscaping, forestry, and arboriculture industries. PSC believes the broker’s 30 years’ experience will drive its U.K. commercial broking strategy and pay for the business in three tranches.
Leicester-based Abaco is an independent insurance broker which maintains property management industry and other offerings. PSC will make a 100% acquisition of the share capital of Abaco for a base consideration of A$37.4 million, excluding net assets.
PSC Insurance Group’s MD, Tony Robinson finds the acquisitions to be consistent with the group’s goals in building a significant presence in the commercial broking market apart from London. After the acquisitions, the company will have four UK direct commercial broking operations and a combined revenue of roughly A$21.4 million.