Dallas-based Republic Group announced that RHP Management LLC will acquire all of the outstanding shares of common stock of Republic subsidiaries Republic Home Protectors Inc. (RHP) and Southern Vanguard Insurance Co. (SVIC).
Under the terms of the agreement, the sale would include the business produced through RHP and written by SVIC, but would exclude all other business written by SVIC through reinsurance arrangements entered into at closing that will remain in effect until all other business is renewed into affiliates of Republic.
The transaction has been approved by the boards of Republic and the members of RHP Management and Omena Partners LLC and is expected to close in Q1 2014. Completion of the transaction is subject to certain conditions, including financing and customary regulatory approvals.
Upon completion, the RHP business will continue to be managed by Terry Cotter, president of RHP, under the new name of RHP Managers LLC, and the company’s headquarters will remain in Houston.
Joe Mattingly, Republic’s president and chief executive officer, stated that the proposed sale “allows management to focus on our core regional company operations, reduce exposure concentrations and free up capital that strengthens our balance sheet.”
Source: Republic Group
Topics Mergers & Acquisitions
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