17 February 2020 – disposal

The specialist in products and services for over 50s has announced that it has reached agreement for the sale of Bennetts, an insurance broker for motorcycles, for an enterprise value of £26m.  The buyer is Atlanta Investment Holdings C Limited, part of The Ardonagh Group.  This is one of the largest independent insurance brokers in the UK, with completion subject to regulatory approval and other closing conditions.  This appears to be a sensible deal which allows greater focus on core activities.  Given the level to which Saga’s valuation has dropped the proceeds are not insignificant.  We continue to rate the shares as a BUY.