Austbrokers has taken a 50% share in WA brokerage Country Wide Insurance Brokers, a member of the Steadfast group.

The Country Wide acquisition is Austbrokers third bolt-on purchase in five months, and greatly expands the group’s regional presence in WA beyond Broome and Bunbury to include Mandurah, Geraldton, Northam, Moora, Narrogin, Katanning and Cunderdin.

Austbrokers paid an initial $3 million in cash up front for its stake in Country Wide, with the final amount pending the performance of the business over the next two years.

Country Wide was launched in Perth in 1989 and has 40 staff with gross written premium of $36 million. Founding partners Peter Banks and Wayne Cooper will retire from the company as employees but will continue as directors.

The Country Wide purchase follows the acquisition of Brisbane equipment insurance group CEMAC by Austbrokers subsidiary Austagencies, and the Victorian broking portfolio of Australian Consolidated Insurance late last year.

When combined, the three purchases have added $49 million in gross written premium to Austbrokers’ books.

CEO Lach McKeough says the purchase increases the number of broking businesses under the company’s banner to 42.

“We’ve been in discussion with Country Wide for quite a few months,” Mr McKeough told insuranceNEWS.com.au. “The bottom line is they are good business, with a very good regional spread and a different mix of clients.”

Mr McKeough says Austbrokers is continuing to look for new acquisitions.

In February, the company lifted its full-year forecast after a bumper six-month period saw net profit after tax rise by 20%.