MYI, which is backed by US private equity firm Altamont Capital Partners, said the merger would create additional growth opportunities and further enhance its position as the leading provider of loss adjusting services across the aviation industry, encompassing expertise in aviation claims, property, business interruption, liability and cargo adjusting.
LDC originally backed the £10million management buyout of Airclaims in 2005 from UK and French insurance companies, British Aviation Insurance Co Limited and La Reunion Aerienne.
As part of LDC’s long-term investment strategy, the group’s data and analytics arm was spun out in 2006 to create Ascend, a new company concentrating on a core offering of aerospace information, valuations and appraisals and consultancy solutions. This meanwhile enabled Airclaims to focus on consolidating its market-leading position in the claims management arena.
In 2010, LDC provided additional equity to continue Ascend’s aggressive growth strategy, which included the opening of new offices in London, New York and Hong Kong as well as continued new product development. The business was subsequently sold to Reed Business Information (RBI), the business information division of Reed Elsevier, becoming part of RBI’s aerospace data services business Flightglobal.
Yann Souillard, Managing Director of LDC, said: “Since we backed the MBO of Airclaims in 2005, the business has grown ahead of plan each year. This is a testament to the strength of its management team, the quality of its service delivery and the calibre of its employees. We are delighted to see Airclaims joining such a complementary business as MYI, which will enable the business to continue its expansion plans over the years to come and reach its full potential.”
“Combined with the successful disposal of Ascend to RBI, our original investment has performed strongly, clearly demonstrating the ability of private equity to create significant value through the development of new services and geographic expansion, strategic re-positioning, follow-on investment and a highly selective exit process.”
Vern Chalfant, CEO of McLarens Young International, said: “This merger is part of our long term strategy of growth – both organically and by acquisition - in key markets across the globe. Aviation is an ideal sector for MYI – a global market, dominated by a small number of niche players, which requires a very technical approach to loss adjusting. Airclaims is the world leader in this sector, so this was a natural fit for us.”
Mark Hunter, CEO of Airclaims, added: “We were seeking to merge with a truly global business, with a recognisable brand, scalability and a focus on quality of service. At the same time, an appetite for future growth was imperative. It was clear from the outset that MYI more than satisfied these characteristics and we are delighted to form this partnership.”
ENDS
13 September 2011
Notes to editors
About LDC
- LDC (Lloyds TSB Development Capital) is part of the Lloyds Banking Group and is authorised and regulated by the Financial Services Authority.
- LDC has, since 1981, completed over 400 investments, has ongoing interests in over 60 businesses across the UK.
- LDC back ambitious management teams from UK-based companies seeking between £2m and £100m of equity for management buy-outs, institutional buy-outs, growth capital or development capital transactions.
- LDC invests in a broad range of sectors and has particular experience in Construction & Property, Financial Services, Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure and Support Services.
- LDC has a UK regional network of offices alongside an international operation based in Hong Kong.
- For more information, visit www.ldc.co.uk.