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Bids, Mergers and Takeovers

Charles Taylor acquires Metro Risk Management

04 September 2017 07:27

Charles Taylor subsidiary, Charles Taylor General Agency has agreed to acquire Metro Risk Management LLC, a West Coast USA insurance claims third party administrator, for a maximum consideration of US$1.8m.

MRM specialises in managing workers' compensation claims in California.

Charles Taylor will pay US$1.3m in cash on completion, expected to be 5 September, to acquire 100% of the equity of MRM from Nautilus International Holding Corporation.

An additional payment of up to US$0.5m in deferred consideration will be paid on the third anniversary of the transaction, subject to achieving certain performance targets.

Charles Taylor said the unaudited gross assets of MRM on closing were expected to be US$0.4 million compared with audited gross assets of US$9.8 million1, as at 31 December 2016.

It said MRM achieved revenue of US$3.0 million and profit before tax of US$0.8 million in the year to 31 December 2016.

It said that year to date 2017 performance was behind 2016 due to lower claims volumes.

It said that following completion, MRM would be consolidated into Charles Taylor's accounts for the remainder of the year ending 31 December 2017 and after transaction and integration related costs, was not expected to make a material contribution to earnings for that period.

It said the acquisition was expected to contribute modestly to revenue, profits and earnings in the year ending 31 December 2018 and in subsequent years.

Story provided by StockMarketWire.com

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