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Sovereign backed Arachas makes first acquisition

08/08/17

Sovereign Capital, the UK private equity Buy & Build specialist, is pleased to announce that portfolio company Arachas Corporate Brokers (“Arachas”), a leading insurance brokerage operating in Ireland, has made its first acquisition, six months after Sovereign backed the management buy-out of the business. Capital Cover Group (“Capital”), is a long-established broker of insurance products and brings a complementary product set to Arachas. Sovereign will continue to work with the management team to further grow and develop the business through a strategy of Buy & Build. The Capital Cover Group transaction is subject to approval from the Central Bank of Ireland.

Established in 2004, Arachas is a specialist corporate, SME & affinity scheme brokerage delivering exclusive insurance facilities and financial planning services to the Irish business community. Dublin-based Capital has successfully specialised in growing a number of niche insurance areas. The combined group will employ approaching 160 staff across its offices in Dublin, Cork and Waterford.

Commenting on the transaction, Neil Cox, Partner, Sovereign Capital, said: “Only six months after backing the Arachas management team, we are delighted to have assisted the business deliver its first acquisition. We look forward to building on this with further investments continuing, our work with Arachas in the insurance market.”

Donal Cronin, CEO of Arachas said: “We are delighted to have concluded this deal with Capital; they are a highly successful company, with a great team, that will fully complement our business. With Sovereign’s support, we will continue to grow our business through strong organic growth and further acquisitions of like-minded brokers.”

Other portfolio investments held by Sovereign in the financial services and insurance sectors include Kindertons, the nationwide provider of outsourced accident management services for motor insurers and insurance brokers. Since being backed by Sovereign revenues have doubled to over £100m.

Debt to support the transaction was provided by Five Arrows Direct Lending (Rothschild).

For further information please contact: Julie Sieger, Sovereign Capital, on +44 (0)20 7340 8800 or email:juliesieger@sovereigncapital.co.uk