JC Flowers acquires Belgium's Fidea for €243.6m

KBC's divestment is part of the company's new strategy that is announced in late 2009. According to this KBC will reduce the risk profile of the group and concentrate on its bancassurance expertise.

The deal includes €22.6m in pre-completion dividend. There is a potential ‘conditional earn-out' that is subject to Fidea's future results.

Upon completion, which is expected in Q1 of 2012, KBC will have reduced its risk-weighted assets by €1.8bn and free up €100m in capital. However, the transaction is expected to have a negative impact of €100m on KBC's balance sheet.

Before closing the deal with JC Flowers, there was interest in the acquisition of Fidea from numerous investors. JC Flowers won the deal based on their offer and future strategy for the business.

Fidea joins other financial organizations, such as the British Pension Corporation and the Dutch NIBC Bank in JC Flowers' portfolio.

Company
Fidea is an Antwerp-based insurance business that operated as part of KBC Group until the acquisition. The company provides life and non-life insurance for individuals, self-employed and small and medium-sized enterprises. Insurance policies are sold through 380 independent brokers within a bancassurance cooperation agreement. Through Centea bank agents, Fidea has 633 points of sale in Belgium.

With more than 372,000 customers, Fidea has a 1.5% market share. The company employs 316 people.

People
Jordan Robinson, managing director, led the deal on behalf of JC Flowers. Wim Allegaert structured the deal for KBC. Edwin Schellens is the CEO of Fidea.

Advisors
Equity – Credit Suisse (Corporate finance); Deloitte (Corporate finance); Cleary Gottlieb Steen & Hamilton (Legal).
Vendor – KBC Securities (Corporate finance); Morgan Stanley (Corporate finance); Eubelius (Legal); Linklaters (Legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Buyouts
• Benelux
• Financials
• Credit Suisse
• Deloitte
• Morgan Stanley
• Linklaters