FISHERS INTERNATIONAL, the insurance and financial services group, has agreed to buy two British insurance services companies for up to £3 million sterling. Miller Knight, a firm of loss adjusters, is being purchased for an initial £1.3 million cash while Robert Bishop (Southern), which operates a travel, personal accident and health insurance claims management business, is being acquired for £0.2 million cash.

The acquisitions, which have to be approved by Fishers shareholders, should initially boost the group's profits by 56 per cent and double its employment to 500 people. Fishers, the former Celtic Gold group, should see earnings grow by 40 per cent in 1996 as a result of the acquisitions.

The two companies had combined net assets of £2.45 million and pre-tax profit of £0.49 million, on turnover of £9.3 million, in the year ended September 30th 1995. Based on these figures it looks like a very good catch for Fishers.

Miller Knight, by far the largest company, has accumulated losses, so there is no tax. The initial consideration, for the two companies, is on a low net profit multiple of 3.06 and, unusually, on a discount to the net assets.

Miller Knight employs 205 people at 21 locations. It earned a profit before tax of £0.39 million on a turnover of £8.6 million last year. The company has a number of specialist units and its client list includes leading composite insurance companies.

Robert Bishop, in Kent, employs 24 people. It generated a pre-tax profit of £0.1 million (on continuing operations) before exceptional charges, last year. Turnover amounted to £0.7 million while net assets came to £0.2 million.

The company manages and administers claims on behalf of insurance companies, insurance brokers, Lloyd's syndicates and local authorities.

The deal involves a further payment of £0.25 million within seven months in respect of accumulated losses (estimated at £1 million) brought forward in the books of Miller Knight. There will be other payments of up to £1.5 million if certain targeted turnover is achieved.

Fishers expects these payments to be self financing. The businesses will be amalgamated with Fishers British network.

Fishers chief executive, Mr Kevin Kenny, said 10 or 11 branches will be closed where there is duplication, but little or no redundancies are anticipated as the businesses are growing.