AUB, PSC ditch Tysers UK retail joint venture
AUB Group and PSC Insurance Group will not proceed with the proposed Tysers UK retail joint venture, the two companies announced today.
AUB will instead retain the entire Tysers business including the retail operation, which it says has demonstrated “strong performance and momentum” since the acquisition of the Lloyd's wholesale broker was completed last year.
The company also announced a $150 million equity raising as a result of no longer receiving an expected $100 million from PSC under the proposed joint venture deal. The raising will increase financial flexibility and balance sheet strength, with the group having spent or committed to spend an expected $149 million on bolt-on acquisitions this financial year, it says.
“The business is pleased to be retaining 100% of Tysers UK Retail. It is a high-performance business which continues to demonstrate attractive profitability and is strategically aligned with AUB’s retail broking expertise,” AUB CEO Mike Emmett said.
The joint venture was announced last year and had been expected to take effect from the start of this month. But PSC advised on April 28 that finalisation of the deal had been delayed as the companies continued to discuss terms.
PSC today said that further to its April notice, it has “formally ended discussions regarding
the memorandum of understanding for the proposed joint venture on the Tysers Retail business”.
“The group has a solid pipeline of acquisitions and our balance sheet is in a strong position to
continue to grow this with our selective and disciplined M&A strategy.”
More details in The Broker this afternoon.