IMAS acted as the exclusive financial adviser to the MD Group of companies (“MD Group”) on the sale of the group to HSB (UK) (“HSB”).
Established in 1997, the MD Group is a leading UK structural warranties and building surveying specialist, which includes the well-known Premier Guarantee and LABC Warranty brands. The group includes the managing general agent MD Insurance Services and is a leading provider of structural warranty, building control and other insurance services to the construction sector across the UK. Its 435 employees include a national network of field-based building surveyors.
HSB is a specialist engineering and technology insurance, engineering inspection and consultancy services provider, covering many industries and sectors across the UK and Ireland. It is part of the Munich Re Group. The HSB brand includes HSB Engineering Insurance in the UK, Hartford Steam Boiler in the United States, and the Boiler Inspection and Insurance Company of Canada. The acquisition of MD Group is part of HSB’s global acquisition strategy to further expand its insurance, engineering and technology expertise.
Gary Devaney, Chairman and CEO of MD Group, commented:
“Having established MD Group in 1997, I am immensely proud of how far we have come. Going forward as part of HSB and the Munich Re Group, we will now have the support and resources of one of the world’s most experienced and stable insurance and reinsurance companies to continue this success story.”
Jacki Goodman, Managing Director of MD Group, added:
“Becoming part of the HSB family is an exciting step for our staff and business. This is a major boost for us and will benefit our organisation greatly as we develop and grow.”
Stephen Worrall, Managing Director – HSB (UK), commented:
“I’m really excited with the opportunity for us to work with the MD Group. This acquisition will not only expand our core insurance offerings into the structural warranty arena but also enhance our distribution capabilities within the UK construction industry. With the same specialist risk management-led underwriting ethos, which is supported by an expert team of surveyors, the MD Group are a complementary fit with HSB. And I’m really looking forward to welcoming them to our HSB family.”
IMAS was retained by the MD Group in early 2020 to advise the business and its owners on a sale. IMAS managed a limited auction process, soliciting interest from a small number of parties with existing expertise in the structural warranty segment. HSB was an existing partner and capacity provider to the MD Group. MD Group’s forensic approach to risk management, and a shared commitment to developing technology solutions to continually improve the insurance risk management process, made the business’ cultural fit with HSB a natural and obvious one.
IMAS advised MD Group on all aspects of the transaction, including assisting the business throughout a comprehensive due diligence process conducted by the buyer. The transaction is subject to regulatory approval.