HgCapital picks up A-Plan Insurance from Equistone

The sale, which valued the company at £300m, has netted Equistone a 2.8x return

Pan-European firm Equistone Partners Europe has agreed to sell a majority holding in A-Plan Insurance to HgCapital, according to a statement.

Financial details of the transaction were undisclosed, but a source close to the matter told PEI the enterprise value was approximately £300 million ($470 million, €378 million). Equistone has netted a 2.8x on the sale, the source added.

Both Equistone and HgCapital declined to comment beyond the statement.

Oxfordshire-based A-Plan was founded in 1963 and provides home, motor and commercial insurance. It has 73 UK offices and serves almost 600,000 policyholders. Equistone acquired a 32 percent stake in the company after backing a management buy-out in 2008.

The firm improved revenues from £44 million in 2008 to £73 million for the financial year ending February 2015, according to the statement. Under Equistone’s ownership, the business has opened 19 new branches and almost trebled in size.

“With its high levels of recurring revenue and customer retention, alongside impressive customer advocacy, we have been hugely impressed by the quality of A-Plan's service offering; we see great potential in further developing its branch network and specialist lines,” Andrew Land, a partner at HgCapital, said in the statement.

HgCapital has invested from its HgCapital 7 fund, a £2 billion (€2.4 billion; $3.3 billion) fund it closed last year. This is the fourth investment from this vehicle.