James Hay Parent IFG Groups is to sell its Irish advisory business to the Irish arm of Insurance broking firm Willis Group for up to £10.8m.
A stock exchange announcement this morning confirmed the move which consists of an initial sum of £9.2m and a deferred £1.6m based on revenue and combined business.
The deal will see IFG Ireland’s chief executive Gary Owens join Willis Ireland to head up the combined Irish pension and employee benefits business and resign from the IFG board.
The move is still subject to regulatory approval but is expected to complete later this year.
The Irish pensions and advisory business made a pre-tax profit of £100,000 in the first six months of 2014 and has assets of around £13.7m in total.
IFG’s Irish general insurance business is not included in the deal although IFG is currently looking for a buyer for the Irish GI arm.
IFG Group chief executive Paul McNamara says: “This transaction is consistent with our strategy to focus on the continued growth and development of James Hay Partnership and Saunderson House. The sales proceeds will further strengthen our balance sheet and facilitate investment in these businesses.”