Giles makes first acquisition in Wales with purchase of Hedges & Rose
Ambitious independent broker Giles Insurance Brokers has made its first acquisition in Wales following the purchase of Llantrisant-based Hedges & Rose Insurance Service Limited.
Hedges & Rose was established in 1984 and has grown to become the eighth-largest broker in Wales.
The company commands £8 million in premium income, with around 65% of its business coming through commercial lines and the remainder via personal lines. For 2006, Hedges & Rose generated around £700,000 profit through £1.5 million in brokerage.
It currently has 24 members of staff, many of whom have been with the business for a number of years and have extensive experience in the insurance market in Wales. The acquisition of Hedges & Rose gives Giles the ideal platform upon which to tackle the Welsh market.
Chris Giles, Chief Executive of Giles Insurance Brokers, said: “This is our first purchase in Wales and it allows us to strengthen our presence in this very important market.
“We see a great deal of potential to grow the business in Wales and have set some ambitious – though achievable – targets to double the size of our Welsh operation within the next 12 months.
“We are delighted to welcome the Hedges & Rose management team to Giles and anticipate them playing key roles in our drive to establish the Giles brand in this important market.”
Hedges & Rose were courted by a number of leading consolidators prior to agreeing to sell to Giles. The sale will see the Hedges & Rose management team join Giles and will see key personnel acquire equity in Giles.
Michael Jones, Commercial Director at Hedges & Rose, said: “We used professional advisors and spoke to five parties before making our decision, but it was an easy one to take.
“Giles is a progressive, enterprising company and we feel it is ideally suited to help us develop as a management team and grow the business in Wales.
“It quickly became clear during our negotiations with Giles that it is a company which is keen to do a deal and will work with a young management team to help it reach its full potential.” The deal with Hedges & Rose follows hard on the heels of Giles’ acquisition of Scottish broker Crosbie & Jack. Family-run Crosbie & Jack was established 40 years ago and controls approximately £20 million in premium income. Giles has also recently signed a deal which has seen a major investment in the business by Norwich Union and Gresham, the UK mid market private equity specialist. Giles has also secured further funding from the Clydesdale Bank which will be used to fund further acquisitions in the coming year.