Gresham in £12.3m backing of Lanes Assistance Services buyout
Private equity firm Gresham has backed the management buyout of Quinton-based Lanes Assistance Services with a £12.3 million investment.
The investment will buy out existing shareholder Lanes Group as well as ensuring significant investment in Lanes Assistance Services’ (LAS) infrastructure and personnel to fund future growth.
With offices in Birmingham and Manchester, LAS provides outsourced claims management and building repair service to the insurance industry.
Its clients include a number of top UK insurers.
Paul Franks, partner at Gresham, said: "We have been looking to invest again in this market for some time now.
"The key for us has been to identify a market leading business that delivers real and quantifiable cost savings for its insurer customers. Our work on LAS has substantiated this."
The management buyout was led by LAS managing director Darren Cooper and commercial director Tim Walker.
Mr Cooper said: "Partnering with Gresham will ensure that we are well placed to maximise the wealth of opportunity which exists in the market.
"The investment will ensure that the high level of customer service LAS provides is maintained as volumes increase and that future growth is managed in a controlled manner.
"It’s a very exciting time for us."
Recent Gresham investments in the insurance and claims management sectors include insurance broker Giles which was successfully exited in 2008 yielding an investment return to Gresham of 2.8x money and Ansa, a claims management business exited in 2005 which yielded a return of 3x money.
This is the second transaction in eight months where Gresham has underwritten the whole funding requirement of the deal at completion.