Kester Capital (“Kester”), the primary buyout specialist, has announced that portfolio company Ceta Insurance, a tech-enabled niche insurance broker, has completed its acquisition of the UK’s largest beach hut insurance broker, Love Your Hut. This is the third portfolio bolt-on acquisition to be made by Kester in twelve months and comes in the wake of Factory CRO Group’s acquisitions of Five Corners and Boston Biomedical Associates.
This latest acquisition comes at a time of significant momentum for Kester. Last month, it announced that it had expanded its investment team with four new hires.
Love Your Hut is the first of a series of acquisitions that Ceta Insurance expects to make, following an MBO supported by Kester in September 2017. Established in 2013, Love Your Hut has gained a dominant position within its niche insurance sector, which includes beach huts, chalets, shepherd huts and small houses.
Cameron Crockett, Managing Partner of Kester Capital, said “Ceta’s tech-enabled insurance distribution platform has been designed to support bolt-on acquisitions with the minimum of integration disruption. Since we backed the management buyout in 2017, we have worked closely with the Ceta team to identify complementary niche businesses like Love Your Hut. We have a healthy pipeline of similar bolt-on opportunities and we are very pleased to be supporting the first of these.”
He added: “This latest bolt-on acquisition comes at an exciting time for Kester as we expand both our own investment team and our portfolio of fast-growing UK companies.”
Kester’s portfolio companies have received a number of accolades in recent months. In May, Frontier Medical Group, a diversified medical device business focused on the Skin & Wound Care and Infection Prevention markets, won the award for “Business Transformation Management Team” at the BVCA Wales Management Team Awards 2019. It is also included in The London Stock Exchange Group’s “1000 Companies to Inspire Britain 2019”, an annual celebration of some of the fastest-growing and most dynamic small and medium-sized enterprises in the UK.
Kester Capital is a primary buy-out specialist, led by an entrepreneurial and experienced team, and focused on UK businesses that require capital in order to unlock their potential.
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