8-9-on-the-record 3.qxp 22/4/09 17:12 Page 8
ON THE RECORD
Deals in the pipeline
COBRA
STRIKES
AGAIN
Insurance
SECTORGUARD KEEPS
company Cobra
recently acquired
Opal Mortgage
AN EYE ON THE MARKET
Life and Pensions
and Thornway “We have been through a transformational period,” says
Insurances, SectorGuard Plc chief executive Mark Higgins. The company has
thereby completing an acquisition completed a string of acquisitions, the most recent being Legion
streak of some ten companies in Plc, which have increased turnover fourfold in the last 12 months.
the last 18 months. Cobra CEO Nevertheless, SectorGuard is cautious about growing too rapidly.
Steve Burrows comments: “We’re “A fast-growing business needs to have the right expertise within
now looking at consolidating and the management team and the board in order to provide value for
maximising our synergies, so we’ve our shareholders,” adds Higgins, “and we are unlikely to consider
put a halt to our acquisition further acquisitions until we complete the integration of Legion”.
strategy for the moment.” However, the company is still keeping an eye on the market.
One of the biggest concerns for Higgins comments: “There are some distressed businesses in the
the company is funding. industry at the moment, which have a good client base and have
“Thornway was an all-share deal”, historically traded well, but because of the nature of their business
SectorGuard is on the
comments Burrows, “and Opal was and cash flow, they are exposed to the difficulties of funding.
hunt for more deals
our first foray with an IFA and it “Suffice to say, we are exploring the opportunities in the market.”
worked really well for us – it has
been seriously profitable.”
Despite this success, the MELORIO IS BACK IN THE CLASSROOM
company is reluctant to return to
debt financing. In 2008 Melorio, a London-based sector, providing a solid platform for
“The way forward is definitely vocational training provider, acquired organic growth.”
all-share deals,” adds Burrows. rivals HB Group and Zenos. Alex Sheffield is positive about the outlook
“We are lucky enough to have a Sheffield, Melorio group finance director, over the next 12 months. He says: “Our
cash surplus but as you can says the growth company is likely to construction training business has been
imagine, we are holding on to it consider further acquisitions. affected by the downturn but it just means
with some vigour.” “The deals have enabled us to diversify that we’re not growing as quickly as we
However, Cobra is not ruling out at an important time,” he tells M&A would have anticipated 18 months ago.”
further expansion. “Of course, if magazine, “and the acquisition of Zenos “Funding is harder to come by but we
something really exciting comes gives us an important foothold in the have got really supportive banks and we
along we would definitely review information communication technology don’t feel unduly constrained,” he adds.
our plans,” says Burrows.
8 Mergers & Acquisitions
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