Esure IPO gives firm £1.2bn market cap

In 2010 Electra Partners, together with Penta Capital, backed the buyout of the company in a deal valued at around £270m, acquiring Lloyds Banking Group's 70% stake. Electra invested £30m in the deal for a minority holding, while Penta became the controlling shareholder.

Penta has sold shares worth £305m and retains an 11.6% stake in the firm, worth £140m. Penta has also provided further options to sell shares worth £90m, which would reduce its shareholding to 4.1%.

To date, £15.3m of Electra's original £30m investment has been repaid. Electra is due to receive proceeds totalling £51.5m following the IPO, and will retain 6.19 million shares in the company, valued at £17.9m at the IPO price. The listing, together with earlier capital returns, has generated a money multiple in excess of 3.3x for Penta.

Deutsche Bank and JP Morgan are global coordinators and bookrunners on the sale.

Company
Esure was founded in 2000 as a joint venture between Peter Wood and Halifax. Based in Wallington, the firm offers car, home, pet and travel insurance over the internet and by phone. The company launched the Sheilas' Wheels brand in 2005, offering insurance primarily to women.

Esure also has offices in Manchester and Glasgow and employs more than 1,500 members of staff.

In 2012, the company's pre-tax profits amounted to £115.5m, a 110% increase from the year prior, with a trading profit of £138.1m. Its combined operating ratio is 92.8%.

People
David Calder and Charles Schrager managed the Esure investment for Penta. Tim Syder led the deal for Electra in 2010.

Advisers
Vendor (Penta) – Dickson Minto (Legal).
Company – Slaughter & May (Legal).

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• Topics
• UK / Ireland
• Financials
• Exits
• United Kingdom
• Penta Capital Partners
• Electra Partners LLP
• IPO