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Australian conglomerate Wesfarmers has agreed to buy the trading businesses of Crombie Lockwood Holdings (New Zealand) Ltd, Wesfarmers said today.
It did not disclose the price and said the acquisition would be funded by existing debt facilities.
Crombie Lockwood was the largest privately owned, New Zealand insurance broking group and operated a specialist underwriting agency and premium funding business, Wesfarmers said.
Crombie Lockwood was also the number three insurance broker in New Zealand and the largest domestic broker focusing on the commercial and small to medium enterprise sectors. It had annual revenues above $50 million and around 300 staff in 16 offices across the country.
Crombie Lockwood would form part of the Wesfarmers Insurance Division and continue to be managed and branded separately from Wesfarmers' New Zealand underwriting business, Lumley General New Zealand.
Wesfarmers' managing director Richard Goyder said the transaction built upon the company's recent entry into the insurance broking market and provided it with complementary country coverage to the OAMPS broking business in Australia.
"Crombie Lockwood also expands our New Zealand insurance operations which began with the 2003 acquisition of Lumley General New Zealand," he said.
Crombie Lockwood chief executive officer Steve Lockwood said that being part of a larger organisation would give greater financial comfort to clients and more opportunities for staff, while positioning the company to capitalise on market opportunities.
Two major shareholders of Crombie Lockwood, Mr Lockwood and chief operating officer Carl O'Shea, will continue in their roles.
The other major shareholder, Colin Crombie, would retire from his position as chairman, Wesfarmers said.
The acquisition was subject to New Zealand Overseas Investment Office approval.
- NZPA / REUTERS
