Multi-million pound Open + Direct buyout

Senior executives of Open + Direct have led a £111.4 million buy out of the company's insurance and lending businesses from Viridian Group plc.

The multi-million pound deal is one of the largest venture capital-backed management buyouts in Northern Ireland's corporate history.

Five executives, headed by Managing Director Paul Elliott, and supported by London-based private equity firm Alchemy Partners, concluded the agreement on Wednesday May 1.

The deal secures the jobs of the 243 employees in Northern Ireland and 137 in Great Britain.

Commenting on the deal, Managing Director Paul Elliott said: "This deal is great news for our clients, customers and staff and I want to assure everyone that it is business as usual from Open + Direct.

"The future of the company is now secured and the entire team looks forward to continued business expansion in both the insurance and lending business.

"The considerable interest in the company expressed by several parties is a measure of the standing in which Open + Direct is held and its potential for even greater success in the future."

Alchemy Partners was formed in January 1997 and is led by Managing Partner Jon Moulton. It has advised on over 70 transactions, which have completed with more than £800 million of equity invested to date.

Speaking of the Open + Direct deal, Dominic Slade, Partner, said the Open + Direct buyout provides Alchemy with a great opportunity to back a team who have assembled and rapidly grown a set of strong businesses. He added: "Not only is Alchemy helping finance the buyout but it is also committing capital to fund further growth."

Mike McKerr, Corporate Finance Partner with Ernst & Young LLP in Belfast, corporate finance advisors to the management team said: "Having contributed to Open + Direct's acquisition growth strategy since its inception, we were delighted to advise the management team through the buy-out which takes the business to the next stage of its development.

"Alchemy Partners' investment in Open + Direct shows that significant venture capital investment can be attracted to Northern Ireland in support of good businesses with strong management."

Open + Direct was created in April 1999. Its lending division is now the leading provider of point-of-sale credit in Northern Ireland and a significant player in the Great Britain market.

In 2000, Open + Direct acquired three insurance intermediaries in Northern Ireland - Spratts, Cathcarts and O'Kanes - and one in Great Britain, Footman James.

With local brokers changing their names to Open + Direct Insurance the management have promised to focus on establishing the brand as a "High Street" name.

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