FFI Holdings Plc (LON:PLC) has broadened the scope of its insurance business with the acquisition of a motorsports events specialist and expects to announce another deal this month.
Subsidiary Reel Media, which FFI acquired in December, has bought the business from US broker All Risks for US$1.83mln.
READ: FFI reels in Reel Media; says US trading affected by scandal involving leading independent film producer
The acquired business insures race teams, racetracks, sanctioning bodies, associations, road courses, and motorsports special events and activities and is expected to generate an underlying profit (EBIT) of US$600,000.
Jerid Schmickle has joined the firm as President of the newly created International and Motorsports division.
“Motorsports entertainment has long held a place in the heart of world-wide fans. This acquisition is a complementary addition to an already broad offering of entertainment related insurance products." said Marc Idelson, Reel Media’s chief executive.
FFI is already the world’s leading issuer of completion contracts for the film industry. These essentially provide backers with guarantee that a film will be made.
Last month, the company warned revenues in the current trading period would be affected by the fall-out from the Harvey Weinstein scandal, which had resulted in a number of projects being unexpectedly cancelled.
Steven Ransohoff, FFI’s chief executive, added: “We continue to pursue affiliations with other insurance intermediaries and hope to announce an additional transaction before month end."