Just Retirement directors back £230m sale
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The directors of Just Retirement are recommending a £229.6m takeover by private equity firm Permira.
Permira arm, Avalon Acquisitions, will pay 76p per share for the enhanced annuity and equity-release provider and inject £25m into the business after the deal for new product development.
Just Retirement revealed it had received bid approaches last November and said in June this year that it was working towards a deal with Permira.
Chairman Tom Cross Brown says: “Avalon’s commitment to inject £25m of capital into the company after completion demonstrates its willingness to support Just Retirement in its future growth.”
The Retirement Adviser head of retirement planning Nick Flynn says: “We have been using the firm extensively this year because its pricing has been outstanding. It will be interesting to see whether they will remain so aggressive in the marketplace after the sale.”
The news comes as Just Retirement last week posted a loss of £8m for the year to June 2009 after a £12m profit in 2007/08.
New business was up by 17 per cent from £42m to £49m. Annuity sales fell by 2.3 per cent to £590m but equity-release new business increased by 2.5 per cent to £162m.
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