Sovereign backed Arachas makes first acquisition

UK private equity firm Sovereign Capital’s portfolio company Arachas Corporate Brokers (Arachas), an insurance brokerage operating in Ireland, has made its first acquisition – Capital Cover Group (Capital) – six months after Sovereign backed the management buy-out of the business.

Capital, an established broker of insurance products, brings a complementary product set to Arachas' existing offering. Sovereign will continue to work with the management team to further grow and develop the business through a strategy of buy & build. The Capital Cover Group transaction is subject to approval from the Central Bank of Ireland.
 
Established in 2004, Arachas is a specialist corporate, SME & affinity scheme brokerage delivering exclusive insurance facilities and financial planning services to the Irish business community. Dublin-based Capital Cover has successfully specialised in growing a number of niche insurance areas. The combined businesses will employ approaching 160 staff across its offices in Dublin, Cork and Waterford.
 
Neil Cox, Partner, Sovereign Capital, says: “Only six months after backing the Arachas management team, we are delighted to have assisted the business deliver it’s first acquisition. We look forward to building on this with further investments continuing, our work with Arachas in the insurance market.”
 
Donal Cronin, CEO of Arachas says: “We are delighted to have concluded this deal with Capital; they are a highly successful company, with a great team, that will fully complement our business. With Sovereign’s support, we will continue to grow our business through strong organic growth and further acquisitions of like-minded brokers.”
 
Debt to support the transaction was provided by Five Arrows Direct Lending (Rothschild).