LONDON Oct 8 A Goldman Sachs unit has
bought a 50 percent stake in privately-held British motor
insurer Hastings, in a deal that values the company at 700
million pounds ($1.13 billion).
Goldman's merchant banking division (GS MBD) will finance
the stake purchase through a mix of equity and new debt
financing, the companies said on Tuesday. The team that led the
management buyout of Hastings in 2009 from Insurance Australia
Group will retain the other 50 percent.
Hastings reported earnings before interest, tax,
depreciation and amortisation of 83.3 million pounds for the
year to the end of June. Hastings had 1.3 million customers at
the time, it said.
The deal comes after the recent flotations of insurers
Direct Line and Sheilas' Wheels owner esure,
who are currently valued at 3.09 billion pounds and 943.6
million pounds respectively.
Evercore Partners and Peel Hunt advised Hastings on
the deal while Goldman Sachs International acted as financial
adviser to GS MBD.