HGGC, a leading middle-market private equity firm, today announced that it successfully assisted its U.K.-based portfolio company Davies in the acquisition of Alternative Service Concepts (“ASC”), its 15th acquisition under HGGC ownership. Davies is an operations management, consulting, and digital solutions provider to organizations in highly regulated markets including insurance, financial services, and other global businesses.
The acquisition is a further demonstration of HGGC’s partner-and-build strategy. Earlier this year, HGGC tapped Canadian investor Alberta Investment Management Corporation (“AIMCo”) for a minority stake in the group to support international expansion. Subsequently, Davies purchased Frontier Adjusters and ASC, which together provide claims services across the U.S. as part of its newly created North American Claims Solutions business.
Headquartered in Nashville, Tenn., ASC provides effective and efficient workers' compensation and property and casualty claims administration services to U.S. & Lloyds insurance businesses, public entities, self-insured entities, insurance agencies and brokers.
“Our investment in Davies demonstrates the core of HGGC’s expertise: positioning our platform companies to scale through complementary add-on acquisitions done with strong partners,” said John Block, Partner at HGGC. “The company continues to deliver creative, customer-centric solutions – due in large part to a continued focus on driving innovation within the increasingly global base of acquisitions.”
This year, the company has added more than 150 new accounts and now boasts an international team of 2,200 insurance, claims and consulting and technology professionals working in close partnership. Thanks to its well-executed organic and acquisition-driven growth strategy, Davies has annual revenues in excess of $200 million as it ends 2019.
“HGGC’s ability to drive alignment with our leadership team, along with access to experts and industry partners, has built a strong foundation for both organic and inorganic growth,” said Dan Saulter, Davies Group Chief Executive. “We are excited about the latest acquisitions, which strengthen our ability to provide end-to-end claims processing and adjusting solutions to insurance markets across North America.”
Building on these acquisitions, Davies plans to continue complementing its end-to-end claims solutions platform with further investments and growth in its highly regarded insurance services and consulting and technology businesses. “We’re pleased to see that our collaborative partnership with HGGC and the Davies management team has already increased the company’s international scale, enabling it to better serve as a multi-line TPA to clients in the U.S. as well as the U.K. and Ireland,” said James Ridout, a Director in the Private Equity group at AIMCo. “Having invested alongside HGGC in the past, we were excited when this additional partnership opportunity arose, giving us an opportunity to build on an already strong relationship.”
Waller Helms Advisors served as exclusive financial advisor to Alternative Service Concepts on this transaction.