£19.5m sale is right ANSA for Mavinwood

ANSA, the Oldham-based drain-cleaning and insurance outsourcing business, has been sold by listed parent company Mavinwood PLC in a move worth up to £19.5million.

LDC, the leading mid-market private equity house, is backing the management buy-out of ANSA Holdings Ltd, based at Aniseed House, Broadway Business Park, Chadderton, and Independent Inspections Holdings Ltd. The transaction is subject to Mavinwood plc shareholder approval.

ANSA and Independent, based in Preston, are market leading providers of claims validation, management and fulfilment services on behalf of the UK’s leading insurance companies.

Customers include Direct Line, Norwich Union, Legal & General and Zurich Financial Services.

LDC, the private equity division of the Lloyds Banking Group, is investing £11.6million in the new company and will hold a majority equity stake. The management team, led by chief executive Steve Watkins, will also become shareholders on completion.

The deal was led by Jonathan Bell and Carl Wormald, from LDC’s Manchester office.

Subject to completion, Jonathan Bell, investment director at LDC, will take a seat on the new company’s board.

Mr Watkins, who was involved when the company, then at County End, Lees, was bought by Mavinwood in June, 2005, said: “LDC’s investment reflects the confidence we both have in our future potential and, looking forward, their support will allow us to strengthen our market-leading position, invest for future growth and continue to provide quality service for all our customers, existing and new.”

Jonathan Bell added: “We are backing a first-rate management team whichhas built two market leading businesses.

“We believe both companies are not only resilient to the challenging economy but also well placed for future growth in their chosen markets.”

The proposed transaction is being supported by a £10.6million package of senior debt and working capital facilities from Yorkshire Bank.