Davies Group bought in £60m private equity deal
Claims management provider Davies Group, based in Stoke-on-Trent, has been acquired for £60m in a secondary buyout.
The company was purchased by London-based private equity fund manager Electra Partners.
Davies Group manages more than 125,000 claims each year, equating to £500m of insurers indemnity spend. It operates from 19 UK locations, including its Riverside Park headquarters in Stoke.
The company was acquired in a management buyout in 2008, backed with £8.6m from private equity firm LDC.
Over the past three years, the group has more than doubled its profitability to £8.4m and increased its number of employees from 400 to 600.
Law firm Osborne Clarke advised LDC and the management team on the transaction.
Robert Wood, lead partner on the deal, said: "This is a great transaction for Osborne Clarke to have been involved in. As everyone will be aware, market conditions over the last two years have not been easy. Despite that, the tangible growth achieved by the management team of Davies Group, with LDC's support, is very impressive.
"This demonstrates the benefits that private equity can bring to a business and, indeed, the wider economy, even during more challenging stages of the economic cycle."
