AXA Private Equity leads an LMBO of Cornhill France Paris, Wednesday September 11, 2002

AXA Private Equity, alongside Cornhill France’s management team led by Christian Cuny, has signed a share purchase contract with Cornhill Insurance Plc (UK) for the LMBO of 100% of the equity of its subsidiary Cornhill France.

Cornhill France generated revenue of € 43.4 million in 2001 and is an insurance company specialised in five niche markets: Accident cover for utility vehicles; rental income insurance; breakdown insurance for new and second-hand vehicles; holiday cancellation insurance; and legal protection for professionals and private individuals. 

Cornhill France has strong positions on its two core activities – accident cover for utility vehicles and rental default insurance – and has a good level of structural profitability. On the rental default insurance segment, Cornhill France is the leader on its domestic market. With the exception of the mature segment of utility vehicle accident cover, Cornhill France’s segments are expected to post annual growth rates of between 10 and 15%.

Cornhill France’s management have been working together for many years and the team has an excellent track record: the group’s revenue has doubled since 1993 while profitability has improved significantly.

AXA Private Equity will hold 74.3% of the acquisition holding, with the rest being held by the group’s management. The LMBO will be moderately leveraged and the financing does not include Mezzanine debt. All the financing of the operation has been arranged by CCF.

The new shareholders intend to pursue the group’s existing management objectives. The principal objective of this operation is not only to continue the development of Cornhill France in its niche markets but also to provide the group with new resources to strengthen its market positions and consolidate its leader positions on the French market.

The operation is subject to approval by the French Finance Ministry (upon recommendation of the CCA, the French insurance advisory committee).

Additional information:  www.cornhill.fr