Saga appoints close brothers to advise on ownership optionsWednesday 4 April 2007
Saga appoints close brothers
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Saga Holdings Limited, the leading provider of products and services to people aged 50 and over in the UK, today announces that it has appointed Close Brothers to assist the board of Saga in exploring future ownership options for the business and the selection of other advisers that will be required. This may lead to an Initial Public Offering ("IPO") in the second half of 2007.
Saga is in a very strong position. It is a well-established and successful brand in the growing baby boomer market of people aged 50 and over. The company has seen considerable development since 2004, when it was the subject of a 1.35 billion management buyout backed by Charterhouse. Saga has achieved strong growth in its core markets, especially in motor and home insurance, and cruise holidays where it has increased its own fleet from 1 to 3 ships. The business has continued to add new services to its growing portfolio of specialist offerings for people aged 50 and over, including a new holiday and cruise programme under the "Spirit of Adventure" brand, a service for buying holiday or retirement homes overseas, health clubs (in a marketing venture with David Lloyd Leisure), and new financial products including equity release and long term care funding.
Saga Chief Executive, Andrew Goodsell, said :
"Saga has made excellent progress in the period since the management buyout. We are well ahead of expectations, and consistently outperforming our business plans. The management team and Charterhouse agree that this is an appropriate time to consider the best future ownership structure to allow the company to maximise its growth potential. There was great interest in an IPO in 2004, though our outgoing shareholder decided not to pursue a float at that time. It is too early in the process to predict the outcome this time, but we will be making further announcements in due course."
Notes to editors :
Saga is the UK's leading provider of products and services specifically designed for people aged 50 and over.
Saga has about 2.2 million customers, to whom it provides insurance, financial services, holidays, cruises, and other services. Saga also publishes the award-winning monthly Saga Magazine, which has over 600,000 paid-for subscribers.
Insurance services provide the largest part of Saga's earnings and customer volumes, especially motor and home insurance.
Saga Insurance recently sponsored the Masters Snooker event and is sponsoring Sir Robin Knox-Johnston in his attempt to sail round the world in the VELUX 5 Oceans yacht race.
For more on Saga's products and services see www.saga.co.uk
For further press information please contact the Saga Press Office on: 01303 771529.
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