PIB Group has called time on recent discussions over a potential sale, opting instead to secure £400 million in debt funding to support its continued expansion across European markets.
The insurance broker, which has been among the most acquisitive players in the UK and continental Europe over the past decade, confirmed yesterday that the process led by its private equity owners had now concluded, with no transaction agreed. The fresh capital injection is expected to support both organic and acquisitive growth across the group’s pan-European footprint.
“This finance provides PIB Group with significant capacity to fuel our planned growth as an insurance broker focused on European markets,” said Brendan McManus, chief executive of PIB. “Our people, proposition and service are best in class and we continue to bring to life our ambition to be a unique pan-European insurance distribution platform.”
Apax Partners and The Carlyle Group, which jointly back the business, had been exploring strategic options since early 2024. At one stage, Gallagher was widely viewed as the leading bidder, with sources suggesting the deal was near completion. However, those talks ultimately stalled and the process was wound down without agreement.
In a statement released alongside McManus, Apax partner Ashish Karandikar and Carlyle’s Jim Burr said: “Having collaborated to establish PIB Group in core attractive geographies in Europe, we look forward to investing further to drive future growth and value creation – realising the opportunities for the sector across Europe.”
Apax acquired its majority stake in PIB from Carlyle in 2021, with the latter retaining a minority holding. The deal was designed to fuel a second phase of growth through acquisitions and international expansion. Since then, PIB has moved aggressively into a number of European markets, acquiring businesses in the Netherlands, Spain, Ireland and Germany.
For the first half of its 2024 financial year, which runs to the end of October, PIB reported adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of £74 million, an increase of 9% year-on-year. Revenues rose 6% to £234 million over the same period.
The decision to withdraw from sale talks follows a shift in buyer interest. What began as a private equity-focused process led by Evercore was later expanded to include trade buyers, amid a more subdued reception from financial sponsors. Industry sources at the time suggested that Gallagher and Brown & Brown were among the parties approached. Gallagher had been widely tipped as being in discussions with PIB, valuing the business at around 13x.
The change in strategy comes as insurance intermediaries continue to attract investor interest, driven by their recurring revenues, strong cash generation and fragmentation across European markets. PIB, formed in 2015, has positioned itself as a consolidator in this space, completing more than 70 acquisitions to date.
Apax, which has previously backed US intermediaries such as Hub International and Assured Partners, views PIB as a long-term growth platform. The new debt facilities are expected to provide the firepower for further expansion while maintaining financial discipline.
While speculation around an imminent sale has been laid to rest for now, market observers suggest the Group could return to the market in future once it reaches its next stage of maturity. For the time being, however, PIB appears firmly focused on scaling its platform across Europe under its current ownership.
