LDC acquires £28m minority stake in RCIB

Kenny Wastell
11 June 2018

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LDC has invested ТЃ28m for a minority stake in UK-based motor insurance brokerage Right Choice Insurance Brokers (RCIB).

The company will invest in the development of its proprietary software platform following the deal.

The transaction comes two years after RCIB acquired three motor breakdown insurance brands from trade vendor ERC.

LDC managing director Yann Souillard and director Steve Aston will take a seat on the RCIB board of directors as part of the deal. The GP has also introduced Ian Owen, formerly of Zurich and Liverpool Victoria, as non-executive director.

Ares provided a debt package to support the transaction.

Company
Founded in 2008 and headquartered in Romford, Essex, RCIB provides motor insurance to customers who typically find it difficult to purchase policies online. Its customers are typically young drivers or drivers who have had accidents, hold criminal or motoring convictions, or own high-performance or imported vehicles.

The company generated a turnover of £26m in its most recent financial year, according to a statement. RCIB has a headcount of around 350. In 2016, it generated a profit of £8.3m before tax, from a turnover of £22.9m, according to publicly available documents.

People
LDC – Yann Souillard (managing director); Steve Aston (director); Aylesh Patel (investment manager).
Right Choice Insurance Brokers – Mike Joseph (CEO).

Advisers
Management – Keefe Bruyette & Woods (corporate finance).
Equity – Addleshaw Goddard (legal); KPMG (financial due diligence, debt advisory); OC&C (commercial due diligence).