Overview and key points
Partners& supported 4D Capital’s acquisition of Hepworth Clay by solving complex insurance challenges under tight deadlines, ensuring the carve‑out completed smoothly and on time.
When private equity firm 4D Capital Partners saw an opportunity to acquire Hepworth Clay, a long-established manufacturer of clay pipes, they took on an extremely complex carve-out from the multinational parent, Orbia, under considerable time pressure.
Challenge
The transaction hinged on putting a new insurance programme in place before financing could be agreed, right in the middle of the Christmas period.
With two large operational sites, legacy data in inconsistent formats, and limited visibility of the existing cover, the risk of delay was significant. Without insurance, the deal couldn’t close.
The challenges were multifaceted:
- Lack of visibility: The insurance programme had been managed internationally by Orbia, leaving little clarity on what needed to be covered for the carve-out
- Data challenges: The data room was complex, including legacy documents in a variety of formats
- Site complexity: Two large operational sites in Hazlehead and Swadlincote required prompt surveying and risk assessment
- Employee transition: It was critical to replicate the employee benefits for staff in the new entity for continuity
- Financing dependency: Insurance placement was a pre-condition for bank financing, meaning any delay could jeopardise the entire transaction
Time pressure: The initial deadline required full placement within two weeks, later extended to three to four weeks – a tight turnaround adding to the challenges.
Partners& didn’t just deliver insurance—they enabled the deal. Their proactive, honest approach and deep understanding of M&A complexities gave us confidence from day one. The speed, precision, and strategic thinking they brought to risk management at Hepworth Clay was superb.
Support
Partners& assembled a cross-functional team to address the challenges collaboratively and efficiently:
Rapid Risk Assessment & Data Analysis
Nathan Bramham, Client Executive, led the project, with Martin Sidebottom, Risk Management Director, conducting site surveys at both locations in a single day. Nathan worked through the data room, identifying gaps and inconsistencies, including missing employee benefits documentation and questionable reinstatement values.
Market Engagement & Placement
Tom Krupa, Client Adviser and Laura Wassell, Regional Placement Partner, engaged multiple insurers and presented a compelling risk profile, which resulted in competitive quotes and a three-year agreement. Their work ensured the client received an excellent solution in a soft market.
Employee benefits & protection
Our employee benefits team worked directly with 4D Capital Partners to design a benefits package that mirrored previous arrangements, ensuring a smooth transition for employees.
Valuation & underinsurance mitigation
We introduced a third-party valuation firm to conduct a full reinstatement valuation, replacing unreliable legacy data and strengthening the insurance submission.
Premium financing & ecosystem partner introductions
Partners& arranged premium financing via Premium Credit and introduced ecosystem partners including BCarm (business continuity) and the CFO Centre (financial strategy). Credit insurance support was also provided by our specialist in-house team to help safeguard the supply chain.
Perform:
The outcome of the Hepworth Clay carve-out was a clear success—both in terms of execution and long-term planning. Partners& delivered a well-rounded insurance solution that addressed the immediate requirements of the transaction while also supporting future resilience and development.
Transaction enabled without delay
The insurance programme was placed to meet the required deadline, despite the added challenge of the Christmas period. As a result, 4D Capital Partners were able to meet the bank’s financing conditions and proceed with the acquisition as planned.
Partners& provided all necessary documentation, including letters to satisfy the lender requirements, private equity-specific clauses, and underwriting support, to satisfy lender requirements.
Strategic insurance programme
A three-year agreement has been arranged on favourable terms, making the most of a soft market to secure long-term value.
The programme covers general insurance, employee benefits, credit insurance, and professional indemnity, tailored to the meet the requirements of the newly formed entity. It is structured to support future growth, including potential acquisitions and operational expansion.
Relationship expansion
The success of the Hepworth Clay project led to further engagements with 4D Capital Partners, including:
- Reviewing the insurance provisions in J J Ormerod plc and York Handmade Brick Co Limited prior to their acquisition by 4D Capital Partners
- Partners& is already engaged to support the next renewals in these portfolio companies
- Professional indemnity and medical insurance, placement for 4D Capital Partners itself.
The way we engaged with 4D demonstrates that Partners& is not just a service provider but a strategic enabler, helping our clients navigate complexity and unlock value.
We were stepping into the unknown with the carve-out, but Partners& made it feel seamless. From site surveys to employee benefits and credit insurance, they anticipated our needs and delivered solutions before we even asked. It felt like they were part of our team.
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