IFG Group has sold its Irish pension and advisory business to Willis Ireland, part of Willis Group Holdings, for £10.8m.
The businesses being sold trade as IFG Pensions, Investments & Advisory Services through the following companies: IFG Pensco (pensions consultancy and administration business); Retirement Strategies and IFG Private Clients Limited (financial advisory companies); Planlife Trustee Services (professional trustee company); and, Trade Credit Brokers Limited (trade credit insurance broker).
The initial consideration is £9.2m, with the remainder deferred and payable on agreed levels of trading performance.
The sale is subject to regulatory approval and is expected to complete later in the year.
The businesses being sold made profit before tax of £100,000 for the first six months of 2014. Gross assets at the end of June 2014 were £13.7m.
IFG’s general insurance business in Ireland, trading under the banner ARB, remains within the group, although management are currently discussing selling their interests in this company.
The CEO of the Irish segment being sold, Gary Owens, is joining Willis and stepping down from the IFG board. He said: “I am pleased that Willis were attracted by the strength and depth of the IFG team, our independent award winning investment proposition and an industry leading technology platform. The whole team of IFG Ireland and I are looking forward to the opportunities in joining Willis and our clients will benefit from a globally recognised brand name and the resources to add further strength and depth to the overall service offering.”
CEO of IFG Group, Paul McNamara, said: “The newly combined business, backed by the global scale and presence of Willis, represents a compelling opportunity for our colleagues and enhanced services for clients. This transaction is consistent with our strategy to focus on the continued growth and development of James Hay Partnership and Saunderson House. The sales proceeds will further strengthen our balance sheet and facilitate investment in these businesses. IFG is now a more sharply focused Group with well-positioned businesses and the resources to pursue increased growth in our core markets.”