Bridgepoint plans sale of stake in French insurance broker Kereis, sources say

Rothschild & Co SCA

13/04/2023 19:02

By Pablo Mayo Cerqueiro, Andres Gonzalez and Amy-Jo Crowley
       LONDON, April 13 (Reuters) - Private equity firm
Bridgepoint Group Plc  BPTB.L  is preparing to sell its majority
stake in French insurance broker Kereis, people familiar with
the matter told Reuters, in a deal that could value the company
in the region of 2 billion euros ($2.21 billion).
    The buyout fund is leaning towards appointing Rothschild &
Co to run a sale in the coming months, two people said. The
timing is dependent on the health of the debt financing market,
one of them added.
    Kereis and Rothschild declined to comment.
    The deliberations followed recent interest from prospective
buyers and a wave of consolidation in the sector, a third person
said.
    In November, KKR & Co  KKR.N  agreed to buy French wholesale
broker April Group from CVC Capital Partners for more than 2
billion euros.
    KKR initially funded the acquisition without raising new
debt, as soaring interest rates reduced the availability of
credit for risky leveraged buyouts.
    Trade publication L'Argus de l'Assurance reported earlier
this year that a sale of Kereis was under consideration.
    Bridgepoint acquired a majority stake in Kereis - then known
as Financiere CEP - in 2020 from JC Flowers & Co for an
undisclosed amount. The exact size of the stake was not clear. 
    It has since expanded the business through acquisitions,
most recently with the purchase of financial technology firm
Particeep.
    Founded more than 30 years ago, the group acts as an
intermediary for personal insurance contracts in areas like
mortgages and health.
    It is on course to post annual earnings before interest,
tax, depreciation and amortisation (EBITDA) of more than 150
million euros, one of the people said.
    Private equity firms have been drawn to insurance broking
businesses because of their predictable revenues and ability to
grow via acquisitions.
    France, in particular, has been a focus of activity.
    Last year, Ardian acquired a stake in insurance broker
Odealim alongside TA Associates for an undisclosed amount.
    In 2021, local brokers Siaci Saint Honore and Diot joined
forces to create an entity with an annual turnover of close to
700 million euros.
 ($1 = 0.9053 euro)

 (Reporting by Pablo Mayo Cerqueiro, Andres Gonzalez and Amy-Jo
Crowley in London; additionl reporting by Mathieu Rosemain in
Paris; editing by Cynthia Osterman)
 ((pablo.mayocerqueiro@thomsonreuters.com))