Clear Group to acquire specialist Lloyd’s broker LPR from B.P. Marsh

Specialist private equity investor B.P. Marsh & Partners Plc has announced the sale of Lilley Plummer Holdings Limited, the 100% owner of specialist Lloyd’s broker Lilley Plummer Risks Limited (LPR), a marine and property specialist.

Clear London Markets Limited, majority owned by Goldman Sachs, has agreed to acquire the entire issued share capital of LPR.

The deal is Clear’s largest acquisition to date in terms of gross written premium (GWP) – it will add an additional £150m of GWP -, and gives the Group presence in the Lloyd’s market, complementing its specialist capabilities.

Upon completion, B.P. Marsh & Partners expects to receive £21.65m (net of all transaction costs) cash consideration to be received from the disposal of its 28.4% holding acquired for a Net Equity Investment of £0.3m in Lilley Plummer Risks.

This represents a £4.5m uplift (26%) from the £17.1m valuation as at 31 July 2024.

Subject to adjustments at completion, and combined with current cash and equivalent resources, B.P. Marsh expects to have funds available of approximately £100.0m (after transaction costs and tax).

Abigail Benson, the Company’s Nominee Director on the Board of LPR, will resign from this role on completion of the sale.

Lilley Plummer has a team of thirty-eight staff, under the leadership and vision of CEO Stuart Lilley and Managing Director Dan Plummer, who commented: “It has been a privilege to have been a part of the B.P. Marsh portfolio over the last five years. As valued partners, Dan and Abi have been instrumental in helping the business grow to a level that leads us into an exciting new chapter with The Clear Group and Goldman Sachs.

“We would like to sincerely thank everyone at B.P. Marsh for all their expert guidance and friendship since forming LPR back in October 2019 and wish them all the very best for the future.”

Mike Edgeley, Group CEO of the Clear Group said: “This deal is transformational for us because it reinforces our long-term strategy, set out some time ago, to broaden our specialist capabilities, strengthen our wholesale business and bolster our Lloyd’s presence. We knew straight away that this was no ordinary broker, that their skillset perfectly complimented our strategy and so I am absolutely delighted to be welcoming Stuart, Dan and all the Lilley Plummer team to Clear.”

Regarding the use of proceeds, the B.P. Marsh Board plans to balance its investments between growing its existing portfolio and funding new ventures, while also providing returns to shareholders.

Thanks to the sale of Lilley Plummer Risks and a strong financial position, the company plans to distribute a further £7 million in dividends over the next three years.

In the year ending 31 January 2026 it has been agreed to increase the previously announced dividend allocation from £4m to £5m. In the year ending 31 January 2027 the previously announced dividend allocation will be increased from £4m to £5m; and in the year ending 31 January 2028 it has been agreed to extend the dividend policy and pay an additional £5m.

In the year ended 31 January 2024 Lilley Plummer Risks contributed £0.4m income. The company’s Board is confident it will be able to replace the historical contribution from Lilley Plummer Risks as a result of the proceeds reinvestment.

Commenting on this disposal, the Group’s Chief Investment Officer, Dan Topping stated: “It has been a pleasure to work with Stuart Lilley, Dan Plummer and the team at Lilley Plummer Risks over the last five years. The Group’s founding investment in Lilley Plummer Risks, and its eventual sale, is testament to our approach in seeking partnerships with skilled management teams to create and ultimately realise value for our shareholders.

“We are delighted to have been part of the growth of Lilley Plummer Risks and wish the whole team all the very best for the next chapter in their growth and development in partnership with Clear Insurance.”

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