Sonae and Brazilian IPLF Holding, which jointly control MDS, have signed an agreement to sell 100% of this risk and insurance advisory group to The Ardonaugh Group, the UK’s largest independent brokerage group, according to a statement sent to the newsroom this Thursday, December. 23rd.
In a statement published on the website of the Portuguese Commission for the Securities Market (CMVM), the group led by Claudia Azevedo says that “the transaction involves the sale of 50% of the share capital of the MDS group for about 100 million euros. and should bring Sonya a capital gain of about 74 million. “
Maya’s group guarantees that this transaction “will not affect Sonae’s consolidated revenues or consolidated EBITDA.”
The current MDS leadership and leadership team, led by José Manuel Dias da Fonseca since 2000, “will remain fully operational with new resources and capital, and will continue to pursue organic and inorganic growth plans with clear benefits for its core ‘stakeholders’ “, – emphasize the sellers and buyers of the group with Portuguese DNA.
This operation, which “demonstrates the value of this greenfield asset at Sonae, allows MDS to take an important strategic step in the direction it is moving in to strengthen its national and international presence in insurance and risk advisory services. … “they guarantee.
The Ardonagh group of companies, which employs about 8 thousand people in more than 100 offices, is one of the twenty largest insurance brokerage companies in the world with revenues exceeding $ 1.5 billion (more than $ 1.3 billion). Euro).
Its subsidiary Ardonagh Global Partners will remain the sole shareholder of the MDS group following the completion of the announced deal – which is subject to routine regulatory approvals – and predicts it could happen “in the first half of 2022.”
Sonae: “Attractive deal that enhances shareholder value creation”
“Following a long and successful partnership, Sonae and IPLF Holding have negotiated the terms of this deal with The Ardonagh Group, which will enable MDS and its experienced management team to further accelerate their growth and presence by partnering with a leading insurance company. a broker in Europe with a long track record and experience in the sector, ”says an official source for Sonae.
“This transaction is entirely part of Sonae’s proactive portfolio management strategy as it is an attractive transaction that increases shareholder value creation,” says the same maiato group manager.
For José Manuel Dias da Fonseca, this operation represents an exceptional opportunity: “After considering all the alternatives, we have identified within Ardonagh and his leadership team the perfect fit with our vision and commitment to growth. Join an independent group with a culture and a global community. Ardonagh scale. With access to the resources and capital of our new shareholder, we believe that we can accelerate the MDS Group’s organic and inorganic growth plans, ”emphasizes the company’s CEO.
Des O’Connor, CEO of Ardonagh Global Partners, after praising “Jose Manuel and his entire team,” who “has earned a global reputation for customer service, innovation and professionalism, providing first-class service to his clients for over 30 years. “, Ensures that” the MDS Group will continue to accompany the growth of the markets in which it operates, namely Portugal, Spain, Brazil and Africa. ”
“The MDS Group is exceptionally well positioned to continue to support its clients in managing risk in an ever-changing world and, at the same time, bring in other ‘brokers’ who share this strategic and cultural alignment,” says O’Connor.
Sonae and IPLF Holding advised Bank of America as financial advisor, law firm Morais Leitão, Galvão Teles, Soares da Silva & Associados, SP, RL and EY on financial and tax due diligence.
World insurance from Porto
In 1984, Sonae established MDS – Sociedade Mediadora de Seguros, a captive brokerage company to manage domestic insurance. But it wasn’t until the turn of the century that Sonae’s insurance “arm” turned to the market and began to expand internationally. Then, in less than ten years, he will invest about 70 million euros in acquisitions.
The big leap forward came in 2002 when 45% of Lazam, the third largest Brazilian “broker” and one of the largest in Latin America, was acquired. Seven years later, Suzano (from IPLF Holding) buys 49.9% of MDS, SGPS – Sonae receives 47 million euros in cash and MDS retains 100% of Lazam.
The company, headed by José Manuel Diaz da Fonseca, meanwhile acquired 32.12% of British global giant Cooper Gay Swett & Crawford for 35 million euros – the largest operation of the Portuguese company in the insurance sector overseas. In 2013, Sonae cashed out € 12 million through a partial sale of its stake, dropping its position in the then largest independent broker in the world to 9.72%.
Earlier in 2005, MDS achieved leadership in the sector in Portugal after acquiring Unibroker and Becim from the Amorim group.
Last year, he founded Brokerslink in Porto, which began as an informal network of four independent brokers and has grown to become one of the largest global brokers and risk advisory organizations, with operations in over 120 countries and around 21,000 professionals.
In 2007, MDS was finally transformed into a Portuguese-Brazilian group, with Suzano’s share reaching 50%, and control of the insurance group was split from Sonae.
Keeping pace with the shopping accelerator, MDS has already made three purchases this year – two in Brazil (QHConsult and Tovese) and one in Angola (Média Mais).
Market leader in Portugal and one of the largest players in Brazil and Angola, MDS also has direct presence in Mozambique, Spain, Malta and Switzerland.
The MDS Group is also active in the flexible management of benefits and benefits through 838 Soluções e Ben’s (Brazil) and Flexben (Portugal).
As a result of significant organic growth, as well as aggressive acquisitions, both in Portugal and abroad, MDS has ranked among the world’s leading insurance brokers, becoming the only Portuguese-Iberian group among the world’s 250 largest insurance brokerage firms. , according to a recent rating published by the international consulting company Insuramor.
MDS is ranked 141st in the world rankings for 2020 with an estimated revenue of $ 79.4 million (€ 70.4 million), reflecting its performance in various markets where it has a global presence.
According to Sonae’s statement this Thursday, the MDS group “recorded a turnover of 75 million euros in the 12 months to June 2021, managing over 500 million euros in premiums.”
