Fort Lauderdale, Florida-based workers’ compensation services provider Patriot National Inc. announced that it has acquired the assets of Hospitality Supportive Systems (HSS), a Springfield, Pennsylvania-based managing general agent and insurance program administrator to the hospitality industry, and the assets of its claims service affiliate Selective Risk Management.
The estimated maximum total purchase price is approximately $13.5 million, or approximately 5.0 times the calendar year 2014 EBITDA of each entity, Patriot National said.
Hospitality Supportive Systems (HSS) designs and produces preferred insurance programs for the restaurant, bar and tavern industry nationwide. HSS will become part of TriGen Insurance Solutions, a multi-line specialty brokerage in Boca Raton, Florida, that was acquired by Patriot National earlier this month. Patriot National said HSS would further expand Patriot’s reach into a broader base of commercial lines.
HSS’s affiliate Selective Risk Management will join Contego Services Group, an affiliate of Patriot National that provides insurance services and risk management services.
Patriot National CEO Steven M. Mariano said the acquisitions of HSS and Selective Risk Management are consistent with the company’s growth strategy to expand its fee-based product offerings beyond workers’ comp.
Mariano also said HSS and Selective Risk Management would provide a platform to expand Patriot National’s workers’ comp services to the hospitality industry, develop new A+ carrier relationships, and extend a new line of service to Patriot National’s existing clients. Patriot National expects these deals to be immediately accretive to EBITDA.
Patriot National is a national provider of outsourcing services within the workers’ comp marketplace for insurance companies, employers, local governments and reinsurance captives. It provides general agency services, technology outsourcing, specialty underwriting and policyholder services and claims administration services to its insurance carrier clients and other clients. Patriot National is headquartered in Fort Lauderdale, Florida, with nine regional offices around the country.
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