M&A Deal Summary

Warburg Pincus and TowerBrook Capital Partners Acquire AA

On December 9, 2020, private equity firms Warburg Pincus and TowerBrook Capital Partners acquired insurance company AA for 3.8B GBP

Acquisition Highlights
  • This is Warburg Pincus’ 13th and TowerBrook Capital Partners’ 4th transaction in the Insurance sector.
  • This is Warburg Pincus’ 2nd and TowerBrook Capital Partners’ largest (disclosed) transaction.
  • This is Warburg Pincus’ 22nd and TowerBrook Capital Partners’ 12th transaction in the United Kingdom.

M&A Deal Summary
Date 2020-12-09
Target AA
Sector Insurance
Buyer(s) Warburg Pincus
TowerBrook Capital Partners
Deal Type Going Private
Deal Value 3.8B GBP

Target

AA

Basingstoke, United Kingdom
website
The AA is a UK insurance broker with over 2.3 million insurance policies that has a competitive advantage through sophisticated customer analysis ratings and tailored pricing capabilities based on proprietary member data. These capabilities combined with the AA brand and web presence (with over 190 million visits per annum) create a very strong offering in the insurance market. Building on these strengths the AA can provide more competitive and distinctive offers for members in the future. The company remains focused on actions to improve performance in our Motor insurance business by targeting rate reductions from the panel, improving retention performance in call centers, and improving online customer experience. Further, as part of the evolution of the insurance business model, the company will relaunch Financial Services offering to increase its footprint. AA was founded in 1905 and is based in Basingstoke, the United Kingdom.

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Buyer(S) 2

Buyer

Warburg Pincus

New York, New York, United States

Investor Investor Investor Investor Investor

website

Category Private Equity Firm
Founded 1966
PE ASSETS 83.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Warburg Pincus is a mega-sized, global private equity firm focused on investment opportunities across North America, Asia, and Europe. Warburg will consider investing at various company stages, from early-stage opportunities to distressed situations. Warburg Pincus is organized by industry groups. Verticals include financial services, healthcare, technology, media & telecommunications, energy, consumer & industrial, and real estate. Within financial services, Warburg will consider asset/wealth managers, banks, exchanges, financial technology, insurance, transaction processing, private banking, and specialty/consumer finance. Within healthcare, specific areas of interest include medical devices, healthcare services, and biotech/pharmaceuticals. Within technology/media/communications, Warburg targets software, media/internet/information, financial technology, telecom, business services, and systems/semiconductors. Within energy, specific areas of interest include oil/gas exploration, power generation/transmission, and alternative energy. Warburg Pincus raised its first fund in 1966 and is based in New York City.

DEAL STATS #
Overall 409 of 437
Sector (Insurance) 13 of 15
Type (Going Private) 12 of 12
Country (United Kingdom) 22 of 23
Year (2020) 12 of 12
Size (of disclosed) 2 of 49
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-11-20 McMakler

Berlin, Germany

McMakler GmbH is a full-service real estate company. McMakler was founded in 2015 and is based in Berlin, Germany.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-12-23 Avaloq Group AG

Zürich, Switzerland

Avaloq provides powerful cloud solutions for banks and wealth managers around the globe through the business process as a service (BPaaS) and software as a service (SaaS) along with on-premise solutions. Avaloq's vision for the future of wealth management is to maintain the human relationship an investor has with an advisor, to enhance the relationship through technology, and to increase engagement and satisfaction. The democratization of wealth management will allow more people to have access to a greater quantity and quality of investment strategies and advice that was once reserved for ultra and high net worth individuals only. Avaloq Evolution was formed in 1985 and is based in Zürich, Switzerland.

Sell -
Buyer

TowerBrook Capital Partners

New York, New York, United States

Investor Investor Investor Investor Investor

website

Category Private Equity Firm
Founded 2001
PE ASSETS 17.4B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

TowerBrook Capital Partners is a private equity firm focused on leveraged buyouts, leveraged build-ups and distressed situation investments throughout North America and Europe. TowerBrook prefers control-oriented investments and actively pursues complex situations that other firms may avoid. Target sectors include consumer services, distribution, beverages, pharmaceuticals, media, technology, communications, software, and healthcare. TowerBrook Capital Partners was established in 2001 and is headquartered in New York City.

DEAL STATS #
Overall 67 of 76
Sector (Insurance) 4 of 5
Type (Going Private) 2 of 3
Country (United Kingdom) 12 of 13
Year (2020) 5 of 5
Size (of disclosed) 1 of 10
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-12-03 Consolis Rail Business

Brussels, Belgium

Consolis Rail Business consists of a portfolio of brands that designs and manufactures sleepers and other precast concrete products for railways for close to 100 years.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-01-15 ProSight Specialty

Morristown, New Jersey, United States

ProSight Specialty is a property and casualty insurance company that designs unique insurance solutions to help customers improve their business and realize value from their insurance purchasing decision. ProSight Specialty was founded in 2009 and is based in Morristown, New Jersey.

Buy $586M
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