Gresham Private Equity, the UK-based buyout firm, has sold LAS Claims Management to the Innovation Group for £35 million in cash.
The majority of LAS's revenue comes from water-related claims – including storm, burst pipes, flood, fire, theft and accidental damage. The Innovation Group works with the insurance, fleet, motor and property industries, providing business process services and software solutions.
Gresham bought its 70 percent stake in LAS, which provides outsourced claims management and domestic repair services for the insurance industry, for £12.3 million in 2010.
This is its second exit this year, following the sale in January of footwear company Hotter Shoes to Electra Partners, which delivered a return of “more than 3.5x”, a source told PEI at the time. Last year, Gresham sealed two exits: it sold recruitment firm Swift Technical Group to Wellspring Capital Management for a 2x return and training company 7City for approximately £90 million, netting the firm a 3x return. These acquisitions came via its £340 million Fund IV, a 2006-vintage.
Fund IV has had one notable failure: Betts Global, a toothpaste tube manufacturer, which went into administration in 2009 after the business failed to keep up debt repayments.