Sovereign Capital acquires Kindertons Accident Management

Kindertons logo

Clearwater Advisor

Press Release

UK private equity firm Sovereign Capital has acquired Crewe-based accident management services provider Kindertons, for an undisclosed sum, in a deal led by the Manchester team at Clearwater International.

Kindertons is a nationwide specialist provider of outsourced accident management services for motor insurers and insurance brokers together with claims management services for drivers who have been involved in a road traffic accident. Sovereign will work with the management team to grow the business both organically and through carefully selected acquisitions to meet the increasing demand for its offering.

Kindertons services include receiving ‘first notification of loss’ calls on behalf of its work partners and the provision of replacement vehicles and full claims management services thereafter to drivers involved in road traffic accidents. Employing 450 people, Kindertons is headquartered in Crewe and operates 11 depots around the UK, with a total diverse fleet mix in excess of 2,000 vehicles. Kindertons’ nationwide coverage enables it to respond immediately when an accident is reported.

Since it was founded 20 years ago, the business has developed a strong reputation for excellent customer service, which has helped it deliver year-on-year growth and win a host of industry awards. The management team is led by its founder, Shaun Ellison, who will continue in his role as Managing Director. Sovereign is augmenting the management team with the appointment of non-executive Chairman Jon Walden who has considerable motor-industry expertise, having previously been CEO of Lex Vehicle Leasing and a main board director of the RAC.

“With Sovereign’s investment and support we look forward to continuing to grow and develop the business. To date Kindertons has helped almost a quarter of a million people get back on the road after an accident and it is testament to my dedicated team that we now find ourselves in this position to progress the business to the next level.”

Shaun Ellison, Managing Director, Kindertons

“This is yet another successful deal in the insurance services sector following the recent sale of Direct Group to Ryan Specialty Group. Sovereign Capital Partners has a proven record of growing businesses through a buy and build strategy and the insurance services market is highly fragmented and consolidating and is therefore ideal for such a buy and build model.We are expecting debt funds to support private equity activity across the whole of the UK and this deal is a prime example of what is happening in the market. As part of the transaction, we arranged an innovative debt facility which supports both the initial transaction and the ongoing strategic aims of the business”.

Paul Jones, Partner, Clearwater International