Scotland’s largest independent insurance broker has been acquired by the JMG Group, subject to regulatory approval.
The GS Group was formed in Perth 31 years ago from a standing start by managing director George Stubbs, with some second hand furniture and a coffee percolator.
It now has 50 employees operating from offices in the fair city, Aberdeen, Glasgow and Dundee.
The deal - done for an undisclosed sum - should allow the GS Group to expand its footprint further across business, personal lines and risk management insurance services.
Stubbs, who will remain a shareholder and continues to lead the business, said the management team had already drawn up ambitious growth targets.
“We are currently a £30m gross written premium (GWP) business and this investment will help us to achieve our growth ambitions of becoming a £50m GWP business in the next four to five years,” he stated.
“We will continue to offer the same professional service, with the existing team, still operating as the GS Group, but with the added benefits of being part of a larger group of insurance businesses.
“The JMG proposition was particularly attractive as the company echoes our values and will allow us to grow autonomously while supporting the development of our team - it will also give us access to markets and infrastructure that will increase our ability to grow the business.”
Nick Houghton, chief executive officer of JMG Group, commented: “The GS Group is a major player in Scotland and this deal complements our recent investment in the Scottish broking market, taking our GWP placed in Scotland to £50m.
“Our strengths lie in finding the best people in our market, looking after them and supporting them in providing the best advice for clients - we believe we have found a fantastic cultural fit in George and his team.”
JMG Group is made up of 15 like-minded businesses operating out of 19 offices throughout the UK. It was born out of an managed buy-out from the Glendinning family in November 2020 by Houghton, backed by private equity company SYNOVA.
GS Group was advised by Andrew Gould and Gavin Hood of Deloitte Corporate Finance, as exclusive lead financial adviser, and Ewan Gilchrist and Gordon Tatnell of Dickson Minto as legal advisers.
JMG Group was advised by Gordons Solicitors and Deloitte.
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