| Wed 25 Oct 2006, 11:14 | | Glenrand M I B - Expands its market share of Easte |
|
GMB
GMB
Glenrand M I B - Expands its market share of Eastern Cape
Glenrand M I B
Share Code: GMB
ISIN: ZAE000078010
Glenrand M I B has merged its Port Elizabeth operations with those of Bymac
Insurance Brokers, one of the largest local independent short-term brokers,
effectively acquiring Bymac as a going concern. Glenrand M I B is already the
largest short-term broker in the region, and the acquisition of a major
independent consolidates that position by expanding its share of a fast-
growing market.
Andrew Chislett, Glenrand M I B National Divisional Director: Risk Services,
describes the deal as strategic, contributing to the company"s geographical
market share and expanding its presence in the two legs of the short-term
business where it is relatively under-represented: the commercial (largely
owner-managed businesses) and personal markets. In the third leg, the
corporate market, it is already a major player.
"The motivation for the deal was not so much about cost reduction, but about
the exciting opportunities for the growth of the merged businesses. Bymac has
strong local relationships, while we have the appetite for growth and a
powerful brand. Nonetheless, the cost synergies are superb, making the
business case for the merger even more compelling.
"The major risk in acquiring a business that is primarily intellectual
capital, is that of integration. We looked at the Port Elizabeth market and,
of the many active brokers, Bymac clearly stood out from the crowd as having
the same service ethos, the same look and feel, as ourselves," says Louis du
Toit, Glenrand M#I#B"s Port Elizabeth Divisional Executive Director.
Bymac was previously owned by two partners - Eddie Byron and Stuart Macdonald
- both of whom will remain in the business, as will all the staff.
"We"re buying a going concern, not just a book," says Du Toit, "and continuity
for clients is therefore crucial.
"As well as a strategic fit, we were looking for high-touch skills and a
sustainable business model. In a relatively commoditised business, the only
real differentiator between brokers is their level of service - that is how
they maintain long-term relationships and retain business. In Bymac we saw a
service ethic that reflected our own. Eddy and Stuart, along with Andrew Aubin
and their whole team, will remain integral to our combined business for this
very reason," he adds.
Says Stuart Macdonald, "We are very excited about the opportunities for growth
that will result from Glenrand M I B"s broader network and excellent local,
national and African credentials. Our clients and staff can only benefit from
this deal and we look ahead to a bright future together."
Ends
About Glenrand M I B
JSE-listed Glenrand M.I.B Limited (www.glenrandmib.co.za) is a leading
provider of insurance broking and benefit consulting services to a range of
South African and international clients.
Its core business is focused on an extensive risk advisory capability for
corporates, commercial ventures and individuals through innovative
combinations of conventional short-term cover and tailored solutions.
The benefit services division specialises in employee benefits, health risk
management and investment consulting. With it"s head office in Randburg and 13
branches in South Africa, Glenrand also has interests in Namibia, Zimbabwe,
Swaziland, Mozambique and Botswana.
ISSUED GLENRAND M I B LIMITED
FOR :
CONTACT: Louis du Toit, Divisional Executive Director: 041 374 2251
Andrew Chislett, National Divisional Director: 011 329 1111
FAX NO: 041 374 2298
011 329 1762
E-MAIL: lduttoit@glenrandmib.co.za
achislett@glenrandmib.co.za
WEBSITE : www.glenrandmib.co.za
ISSUED LETSEMA COMMUNICATIONS
BY:
CONTACT: Tish Stewart: 011 325 4195 / 082 443 6399
FAX NO: 011 325 4199
E-MAIL: tish@letsemacom.co.za
DATE : 25 October 2006
Date: 25/10/2006 11:14:57 AM Produced by the JSE SENS Department
