August 07, 2017
David Ross, the chief executive of Ardonagh Group, has hinted that the holding company could consider an initial public offering (IPO) as early as 2018, according to a report.
In a recent interview with The Telegraph, Ross said that he’d consider an IPO or sale of the enlarged group once it becomes a “monster”.
"Decisions will be based on being in control of our own destiny in 10 years,” Ross told the newspaper.
"We could IPO, could stay with private equity, could go to a trade buyer. We'll enjoy being private for a while, but could be big enough to IPO. In 12 months, when this is a monster, the board will need to talk,” he said.
The group, which was temporarily named KIRS and rebranded as Ardonagh Group in July, was created in early May to bring together insurance brokers Autonet, Chase Templeton, Ryan Direct Group, Price Forbes and Towergate under a single holding structure, with all five businesses to be run independently.
The group is backed by private equity firms Madison Dearborn Partners and HPS Investment Partners.
In June, the holding company completed an £800mn bond offering. At the time, the company said it intends to use the funds to refinance existing debt, finance the acquisitions of both Direct Group and Chase Templeton, pay for transaction costs and put “incremental” cash on its balance sheet.