3 March 2008, London - A £27 million management buyout of Davies
Chartered Loss Adjusters, one of the UK's largest providers of loss
adjusting and associated claims services, will see the 39-year-old
business reorganised and restructured to strengthen its position in the
UK insurance market.
Under the terms of the deal announced today and led by existing key management, Davies Chartered Loss Adjusters LLP (DCLA) will cease to trade, being replaced by Davies Group Limited. The buyout also provides an exit for a number of the firm’s partners, including senior partner David Ede who will retire soon after the transaction following 39 years’ service.
Davies Group’s management team will be led by new managing director Mark Chapman, formerly deputy senior partner at DCLA. He will be supported by other key DCLA managers including Adrian Palmer, Les Wright, and Darren Coombes. In addition, Mark Molyneux, a former managing partner at Ernst & Young, will join the team as chairman.
The buyout has been backed by private equity firm LDC, which is taking a majority shareholding. Ongoing management will retain a substantial stake in the business. Commenting on the changes, new managing director Mark Chapman said:
“The DCLA partnership has evolved successfully over the last 40 years to become one of the leading players in the UK insurance market, but we felt the time was ripe for the next stage in that evolution. This deal represents that next stage; it will lead to a reinvigorated Davies
Group able to grow and develop in line with our customers’ needs."
“By introducing a new corporate structure we are bringing a fresh ethos and commercial drive to the firm which will provide the opportunity to continue building on our recent growth."
“In LDC we’ve secured a supportive investor with a long, successful track record of working closely with management teams to take businesses to the next level of success.”
Following the buyout, management and LDC will focus on the development of new specialist products and services that respond to the changing needs of Davies’ clients and the wider insurance industry.
Established in 1968, Davies employs over 400 people and delivers a comprehensive range of claims and fulfillment services through a network of 33 regional offices. The business is headquartered in West London.
In addition to the core adjusting of property claims, the £25 million turnover company has a number of specialist loss adjusting divisions which handle complex claims such as subsidence, liability, construction and engineering and major loss. Davies is also able to provide assistance in fulfilling claims through its contractor and disaster restoration networks.