The FedGroup family welcomes a new Tennant

In line with FedGroup’s long-term strategic goal of building a broad-based financial services group, FedGroup has acquired 51 percent stake in Tennant Benefit Consultants.

Through this move, FedGroup adds employee benefits administration to its financial services offerings.

FedGroup’s current financial offering includes participation bond investments, insurance, educations savings, trust services, property finance, estate planning and wills. Services offered by Tennant Benefit Consultants include employee benefits administration, health insurance consulting and individual financial planning.

FedGroup CEO John Field notes that the acquisition brings substantial employee benefits expertise into the company’s portfolio.

“Instead of developing this competency ourselves, we opted to look for an experienced partner which would bring us up to speed with a service which many of our existing clients are looking for,” he says. “In Tennant Benefit Consultants we have a partner with over 20 years experience, a loyal existing client base and proven management expertise in CEO Stephen Tennant, and his executive team.”

While FedGroup now has a majority stake, Field says Tennant Benefit Consultants will continue to operate under the direction of Stephen Tennant; the company will be cobranded with FedGroup and will move into common offices.

“The result is a reduced administrative overhead through shared systems and administration, while providing for the exploration of opportunities which will arise as a result of the relationship,” Field observes.

Tennant explains that his company offers a personal service in maximising its clients’ wealth, employee benefits and human resources. “We achieve this through our commitment to professionalism, our multi-disciplined personnel and our application of technology,” he says.

“Administrators are facing difficulties in the administration of employee benefits as they don’t have the systems or processes to do so cost-effectively. We have developed systems, which provide for the low-cost, automated administration of employee benefits as a strategic differentiator which we expect will deliver benefit to FedGroup as the result of this merger,” Tennant comments.

As the sole African partner of the International Benefits Network, Tennant has the ability to share consistent advice with over 55 countries.

“What is important for existing clients is that there will be no interruption to the day-to-day operation of the business, nor is the job security of any of our 35 employees at risk. The existing shareholders, chairman and directors of Tennant Benefit Consultants all remain,” Tennant adds.

As of 1 September, FedGroup is able to provide a wider range of financial expertise, moving the group closer to its mid-term goal.

“The goal is to be seen as a preferential alternative to the existing financial services providers. The market is presently tough and with a solid balance sheet and sound income, we are on the lookout for opportunities to continue advancing the FedGroup expansion,” Field concludes.