AmTrust Financial Services, Inc. (Nasdaq:AFSI) has entered into an agreement to acquire Republic Companies, Inc and its affiliates from Delek Group Ltd. (TASE:DLEKG), and Republic Insurance Holdings, LLC., for approximately $233 million, which is subject to purchase price adjustments.
Israeli Delek Group, controlled by Yitzhak Tshuva, sell its remaining 66% stake in Republic for $140 million. The 34% stake held by other US shareholders. Delek formerly owned 100 percent of Republic sold its 34% stake for approximately $79.5 million several months ago.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at [email protected].
Thank you.
The purchase price will be a combination of $113 million in upfront cash, a $105 million note issued by AmTrust to Delek Group Ltd bearing annual interest of 5.75% with a four year maturity and cash payments to be made over five years. Pending regulatory approval, the parties anticipate closing will occur during the first half of 2016.
Texas based Republic has been providing property/casualty insurance for over 100 years. In 2014, Republic reported total direct premiums of approximately $711 million. The majority of the business is written in the Southwestern states. In addition, Republic generates fee revenue by providing insurance services to third parties.
“Republic is an excellent addition to our Company’s property/casualty and service and fees businesses. The combination of Republic’s well-established business and brand with AmTrust’s efficient operating platform and strong balance sheet offers great opportunities for profitable growth especially in Republic’s key Southwestern markets, ” said AmTrust Financial Services, Inc. President and CEO, Barry Zyskind. “We look forward to Republic’s seasoned team of managers and employees contributing to the success of our Company and to the benefit of our shareholders, agents and customers.”
