Private equity firm Bridgepoint Group Plc 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 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.
Source: Reuters.com