British insurance group Howden has agreed to acquire Contacto Corredores De Seguros (Contacto), a Peru-based risk and insurance broker.
Under the deal, Howden subsidiary Howden Holdco Perú will acquire a 100% stake in Contacto from Peruvian precious metals producer and mining company Compañia de Minas Buenaventura (Buenaventura).
The deal consideration includes $33.7m (£27.13m) in cash and additional variable costs with a $1.6m cap. This is subject to closing certain conditions.
Howden said the acquisition marks a significant step in its strategy to expand its footprint in Latin America (LatAm).
Contacto’s main business lines include P&C and employee benefits. It operates mainly in the precious metals mining industry.
Howden international growth markets CEO Sonia Caamaño said: “Contacto is a market leader in Peru, and this acquisition represents an excellent opportunity to fully establish ourselves in another Latin American economy, to grow our business.”
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Upon completion of the deal, Howden will serve as an insurance broker for Buenaventura.
Howden LatAm CEO Pablo Bores said: “The acquisition of Contacto comes at an exciting time for Howden LatAm.
“We have recognised that demand for specialist insurance solutions is growing significantly in Latin America, and with the Contacto team on board, we will be the second-largest insurance broker in Peru, providing a credible alternative for clients in the country.”
With the deal, Howden’s headcount will increase to more than 800 people in Peru, Mexico, Colombia, Chile and Brazil.
Contacto CEO Giulio Valz-Gen said: “By leveraging Howden’s global network, data and analytics capabilities, and specialist expertise, we will provide the very best service for our clients and continue the growth momentum we have achieved as Contacto.”