Arachas Acquires Capital Cover Group

10 Aug 2017 | 02.45 pm

Arachas Acquires Capital Cover Group

Brennan Insurances has new owner

10 Aug 2017 | 02.45 pm

Arachas Corporate Brokers has acquired Capital Cover Group, which includes Capital Insurance Brokers, Capital Insurance Markets and Brennan Insurances. The transaction is subject to Central Bank of Ireland’s acceptance of changes in regulatory authorisations.

Capital is a long-established Dublin based broker which has specialised in an increasing number of niche insurance areas. The combined group will employ approaching 200 insurance professionals across its offices in Dublin, Cork and Waterford.

Capital Cover Group Ltd had turnover of €4m in 2016, up from €3.5m the year before. Operating profit for the year was €694,000 and net worth at year-end was €1.95m.

The company employed six directors and 29 other staff in 2016. Directors David Lynch, Olwen Lynch, Liam Conlon, Brendan Curtis, Elizabeth Gavin and Brian Montague shared €683,000 in pay and €356,000 in pension payments while the other staff shared €1.3m in salaries and pensions.

The vendor beneficiaries of the Arachas takeover are David Lynch and Olwen Lynch, who through LGDL Holding Company own Capital Cover Group.

Arachas CEO Donal Cronin said: “We are delighted to have concluded this deal with Capital; they are a highly successful company, with a fantastic team, that will fully complement our business. We will continue to grow our company through strong organic growth and further acquisitions of like-minded brokers.”

David Lynch, managing director of Capital Cover Group, commented: “Arachas share our belief in delivering market leading and cost driven insurance solutions to clients.  All of our brokerage management team and staff can now exploit the benefits of an enhanced product range, additional expertise and purchasing power that Arachas will bring.”

The deal marks the first acquisition in a period of planned expansion for Arachas following the recent MBO of the business supported by Sovereign Capital Private Equity. Arachas was advised by AIB Corporate Finance.

 

Photo: David Lynch (left) and Donal Cronin.

 

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