It’s now the eighth time the mortgage brokerage has been sold and follows a sales process to offload Towergate Financial which was first launched in late 2013.
Towergate Financial – which has well as John Charcol includes TF Financial Planning - went for a gross consideration of £8.64 million. The net proceeds after adjusting for minority interests and transaction related costs will be £6.4m. It is beleived that John Charcol accounts for the majority of the sale price.
John Charcol first launched more than 40 years ago in 1974 at a time when building societies held a cartel in the mortgage market and proc fees where non existent. Since then it has been through numerous reincarnations and now as well as being arguably the UK’s oldest mortgage broker it once again has the mantle for being the most sold.
Towergate Financial had been long identified as a non-core business for the Group given its different operational and risk profile.
The sale would have completed as early as October last year but was put on hold due to consensual restructuring.
Scott Egan, interim CEO of Towergate, said: “The sale of TFG is further evidence of a commitment to our core strategic focus, which is to build on our market-leading positions and distribution capabilities in SME insurance and specialist personal lines.
“The provision of independent financial and mortgage advice sits outside these markets and has now found a more fitting home with Palatine Private Equity.
“We look forward to an ongoing and mutually beneficial relationship with the business post sale, as a distributor of complementary products and advice. Towergate Group is absolutely focused on the opportunities as we continue to revitalise the Group. This action further illustrates the momentum Towergate has gathered following its proposed restructuring.”
Although Towergate will retain responsibility for any historic regulatory liabilities, these are liabilities the Group already has.
Towergate Health+, which currently reports into Towergate Financial Group, will be retained by Towergate Insurance following the transaction and will therefore not form part of the sale.
More to follow…
