Newport purchases majority of Baird MacGregor Insurance Brokers

Newport Partners Income Fund (TSX: NPF.UN) announced it has invested $18.2 million cash for a 77.5% interest in the business of Toronto-based Baird MacGregor Insurance Brokers LP (BMI), an insurance broker specializing in the transportation and logistics industries in Ontario.
Under the terms of the transaction, Newport is also providing $2.3 million through its credit facilities for working capital and to replace a pre-existing operating line for BMIs premium financing business.
We had been approached by a number of interested purchasers, some offering higher valuations but only Newport was aligned with the objectives that were important to us, Philomena Comerford, BMI president, said in a statement.
We wanted to maintain our independence and ensure that we could perpetuate our business model for the benefit of our customers, insurance partners and our staff.
With this investment we are pleased to be adding to our financial services segment, which has been the most profitable segment of our portfolio, Peter Wallace, president and CEO of Newport, said in a press release.
We especially like the insurance industry for its relatively high levels of profitability and low capital expenditure requirements, he added.
BMI has 70 employees and focuses on under-serviced industries and specialized programs.