Alchemy Partners makes 3.6x return on classic car insurer

Alchemy Partners has made a return of 3.6 times its original investment in Footman James, a classic car insurer, which has just provided cover for Scooby Doo’s Mystery Machine.

Alchemy Partners, a London-based private equity firm, has sold Footman James, a specialist insurer, to Aon, a risk management and insurance company, for an undisclosed amount, a statement said.  It is thought that Aon paid about $118 million (€91 million) in cash and shares, the Financial Times, a UK daily newspaper, reported.  Alchemy has made a return of 3.6 times its investment, according to Dominic Slade, a partner at Alchemy.

Footman James: spun a 3.6x return

Footman James was founded in 1983 and specialises in classic cars. The company insures more than 160,000 vehicles and generates an income of more than $80 million. 

Aon already provides insurance for classic and sports cars, holiday homes, yachts, travel, art, antiques and estates.

Alchemy bought Footman James with Viridian, a Northern Ireland energy group, in 2002. 

Slade said Alchemy was attracted to Footman James because it was “a business with an excellent service offering and strong market position”.  He said the firm sold because after a five year investment, the management wanted to move on.

Macfarlanes, a London-based firm, gave legal advice to Alchemy, while Deloitte provided financial services.

Hines Associates, a London-based corporate finance company, provided financial services to Aon while Simmons & Simmons gave legal advice.