Fortis confirms purchase of Kwik-Fit Insurance Services
Fortis (Insurance, UK) and Kwik-Fit GB Limited have agreed, subject to regulatory approval, on the sale of Kwik-Fit Insurance Services to Fortis for the sum of GBP 215 million. The transaction is expected to be completed in the third quarter of 2010.
The purchase is part of Fortis UK's multi-channel strategy and builds on the long-term relationship that has existed between the two businesses. It will further strengthen Fortis' retail operations providing greater capacity and creating a combined retail customer base of 1.6 million. The acquisition will consolidate Fortis as the fourth largest personal lines intermediary distributor in the UK. The combined reported revenue of Kwik-Fit Insurance Services Group in 2009 was GBP 89 million and would bring Fortis' total retail revenues to GBP 189 million. Kwik-Fit Insurance Services has around 600,000 customers holding 1.2 million policies.
Announcing the transaction, Barry Smith Chief Executive of Fortis UK said: "This is a great acquisition for Fortis which further strengthens our retail capability and adds a respected business and their powerful brands to our portfolio. There is very good alignment between the businesses with a shared focus on delivering excellent customer service. The purchase of Kwik-Fit Insurance Services is part of Fortis UK's strategy to increase the breadth and depth of our products through our multi-channel distribution approach. The complementary strengths of Fortis and Kwik-Fit will create an exciting retail business focused on customer needs whilst generating a greater return for OUR company."
Brendan Devine, Managing Director of Kwik-Fit Insurance Services said: "We are delighted to be part of Fortis which is a highly reputable global business. Kwik-Fit Insurance Services has seen profitable growth over recent years and being part of the Fortis group will allow us to continue on this journey. This is a great strategic fit for our business and with Fortis being such a large multi-national it gives our people even more scope for further development and career growth."
On completion of the transaction, Kwik-Fit Insurance Services will become a subsidiary company of Fortis UK with its existing management continuing to run the business. Kwik-Fit Insurance Services Managing Director, Brendan Devine, will report to Andy Watson, Managing Director of Fortis UK Retail. As a result of the transaction, Fortis will employ around 4,000 people in the UK.