FFI Holdings has broadened the scope of its insurance business with the acquisition of a motorsports events specialist and expects to announce another deal this month.
FFI has bought the business, which is a subsidiary of US broker All Risks, for US$1.83m. The acquired business insures race teams, racetracks, sanctioning bodies, associations, road courses, and motorsports special events and activities and is expected to generate an underlying profit (EBIT) of US$600,000.
This suggests an attractive EV/EBIT of 3.0x, says Joe Brent of broker Liberum.
FFI is already the world’s leading issuer of completion contracts for the film industry. These provide backers with guarantee that a film will be made.
Steven Ransohoff, FFI’s chief executive, says: “We continue to pursue affiliations with other insurance intermediaries and hope to announce an additional transaction before month end.”