AUB GROUP LIMITED — Capital/Financing Update 2014

Feb 18, 2014

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ASX release

19 February 2014

Austbrokers Holdings (ASX: AUB) announces key strategic acquisition to diversify income generation and bolster growth

Austbrokers Holdings Limited ( Austbrokers ) has today purchased 50% of the shares in Procare Group Pty Limited ( Procare ), a leading Australian provider of full service workers compensation and insurance support services. Established in 1998, Procare employs over 120 people providing services including integrated insurance and risk solutions, injury management, training, recruitment and placement of staff, investigations and claims and risk management.

Mark Searles CEO and Managing Director, Austbrokers Holdings said ‘’I am thrilled that Procare chose to partner with the Austbrokers Group. They had a number of more lucrative offers on the table but chose us on the strength of our 'owner-driver' business model, proven operating model and associated support services that will assist them in their growth ambitions.

FY14 has been an extremely busy year to date for Austbrokers, ensuring we consolidate the $40m+ of acquisitions undertaken in FY13, continuing to build our bench-strength and making new acquisitions including Procare"

In addition to Procare-driven future growth, the services offered by Procare are complementary to existing Austbrokers partner insurance broking businesses and will provide additional cross-sell opportunities.

The acquisition will help underpin Procare’s value proposition to new clients by having an ASX listed partner shareholder, in addition to the company being able to leverage AUB group services including its datacentre.

Mark Colgan Managing Director, Procare said, "We look forward to the opportunities that will undoubtedly flow by joining the Austbrokers network. Procare has enjoyed a strong growth trajectory in recent years and we anticipate this growth to gain momentum as a result of Austbrokers value adds."

A completion payment of $7.3 million (representing approximately 70% of the estimated purchase price) has been paid which has been funded from cash held. The final purchase price will be determined based on performance for the year ending 30 June 2016. On a full year basis, it is expected that this acquisition will contribute approximately 1.5% earnings per share growth after allowing for full funding costs on the estimated purchase price[1] .

- Ends -

For further information please contact:
Mark Searles	Steve Rouvray
CEO and Managing Director	CFO
T:02 9935 2255	T: 02 9935 2201
E: marks@austbrokers.com.au	E: stever@austbrokers.com.au

1 This announcement may contain forward looking statements relating to future matters, which are subject to known and unknown risks, uncertainties and other important factors which could cause the actual results, performance or achievements of Austbrokers and the Austbrokers Group to be materially different from those expressed in this announcement. Except as required by law, neither Austbrokers nor any other person warrants that these forward looking statements relating to future matters will occur.