New York-based J.C. Flowers won a bid to enter exclusive talks to buy Compagnie Europeene de Prevoyance, Reuters reported. Compagnie Europeene de Prevoyance is a French loan insurance broker. Financial terms were not disclosed. However, a source familiar with the matter said the deal with French private equity firm PAI Partners valued the company at more than 800 million euros ($1.16 billion).
* Proposed deal said to value CEP at more than 800 mln euros
* J.C. Flowers beats Anacap, Bridgepoint
(Reuters) – Banking and finance buyouts firm J.C. Flowers is in exclusive talks to buy French loan insurance broker Compagnie Europeene de Prevoyance, after winning a bid by offering to help it expand at home and internationally.
While no financial details were disclosed in a statement on Friday, a source familiar with the matter said the deal with French private equity firm PAI Partners valued the company at more than 800 million euros ($1.16 billion).
J.C. Flowers had been bidding against rival financial services specialist Anacap and European mid-market buyout firm Bridgepoint [BRDG.UL], sources had said previously.
CEP’s chairman and founder Hubert Guillard and the company’s management team will invest reinvest alongside J.C. Flowers, founded by Christopher Flowers in 2000, one of the best-known private equity investors in the banking and finance industry.
J.C. Flowers invested in Kent Reliance Building Society last year, seen as a plaform to consolidate the fragmented British building society sector.
The firm has also pledged to invest 450 million euros in Spanish group Banca Civica, though that deal has been on hold while Civica plans a merger with other cajas, or savings banks. [ID:nLDE6B70SA]
CEP is France’s largest loan insurance broker, with close to 20 percent of the market. Since 2007, the group has been expanding into Italy and Spain.
CEP’s sellers were advised by Rothschild [ROT.UL], Nomura (8604.T: Quote, Profile, Research, Stock Buzz) and Financiere de Courcelles. J.C. Flowers was advised by Credit Suisse
(CSGN.VX: Quote, Profile, Research, Stock Buzz).
(Reporting by Simon Meads; Editing by Dan Lalor) ($1 = 0.6882 euro)