Pensions and protection consolidator Chesnara has acquired Sanlam Life & Pensions in a £39m deal.
Chesnara, which operates across the UK and Europe, purchased Sanlam’s pension business at a discount of almost 20 per cent of the estimated value of the firm.
The acquisition comes in the wake of two key developments. Firstly, it closely follows Sanlam’s August statement, revealing its intention to draw its advisor network to a close. Secondly, it accompanies a recent report revealing that Chesnara has a warchest of £120m to fund select mergers and acquisitions.
Chesnara CEO, John Deane, said:
“Sanlam Life & Pensions business is well-aligned to Chesnara’s acquisition strategy, and will be integrated with our existing UK operations.
“We believe that the market prospects for further acquisitions across our target markets remain positive. Therefore we continue to be confident in our ability to finance and execute such transactions on attractive terms for both vendors and our shareholders.”
Chief executive officer of Sanlam UK, Jonathan Polin, said:
“This deal is a testament to the strength and quality of Sanlam Life & Pensions. For instance, its long-standing track record of excellent client service. I am confident that the business will flourish under its new ownership for the benefit of all its key stakeholders.”
The firms expect the transaction to complete in 2022, bringing nearly £3bn assets under management and 100 employees to Chesnara.
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