Dow Schofield Watts LLP has advised on the buy-in/management buy-out of Paymentshield Limited; debt and equity funded by Bank of Scotland Corporate (“BOS”).
Deal Number: 18
Deal Completed: 02/09/2004
Price Paid: £ 36.0 million
How Satisifed: Cash
Richard Riding and Patricia Cottrell started Paymentshield in 1992. Paymentshield is a wholesale mortgage insurance business, selling cover via independent financial adviser networks. They built up the operation with a head office in Southport, employing 200 people.
It has become the UK’s largest independent provider of mortgage-related products and insurance services to the intermediary sector.
The business has been sold for around £36m to the existing management team at Southport. The management have brought in a new chief executive, Stuart Pender, to head the company. Mr Pender was previously with Skandia, the Swedish insurance group.
The new owners include the founder’s children. The full team is Paul Evans, Graham Boulger, Gareth Riding, Lee Cottrell, and Michael Riding.
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In its last accounts filed at Companies House, Paymentshield showed a gross profit of just under £8m, with an operating profit of just over £1m.
