Apollo Global Management LLC, the investment firm led by Leon Black, has completed its acquisition of Aspen Insurance Holdings for $42.75 per share in cash, with an equity value of approximately $2.6 billion.
The transaction, which was first announced on Aug. 28, 2018, closed on Feb. 15, following receipt of regulatory approvals and the approval of Aspen’s shareholders.
Aspen is now wholly owned by the Apollo Funds, and Aspen’s ordinary shares have ceased trading on the New York Stock Exchange and the Bermuda Stock Exchange with effect from Feb. 15, 2019.
Over the past year, Aspen has been in the midst of a restructuring after reporting losses. Rumors were prevalent that the company was the target of a takeover.
Glyn Jones has stepped down from his position as chairman of Aspen’s board and, as previously announced, Chris O’Kane has stepped down as group chief executive officer and as a director. Mark Cloutier has been appointed as executive chairman of Aspen’s board and group chief executive officer.
In addition to Glyn Jones and Chris O’Kane, Albert Beer, Matthew Botein, Gary Gregg, Heidi Hutter, Karl Mayr, Bret Pearlman and Ron Pressman have also ceased to be directors on the Aspen board with immediate effect.
John Cavoores and Gordon Ireland will remain as directors on the Aspen board and will be joined by Josh Black, Alex Humphreys, Gernot Lohr, Gary Parr and Michael Saffer, each of whom have been appointed to the Aspen board (in addition to Mark Cloutier) with immediate effect.
“We are excited for our funds to be acquiring Aspen as it embarks on the next chapter of its development,” said Alex Humphreys, partner at Apollo.
“We are delighted to be working with Mark [Cloutier] again following our successful investment together in Brit Insurance,” added Humphreys.
“Mark has a long and successful track-record in the insurance sector and we believe he is ideally placed to lead Aspen through a period of transition to substantially improved profitability. We look forward to working with him and Aspen’s talented management team to drive value creation over the coming years.”
“Seventeen years ago, with 38 colleagues, $600 million of assets and a vision, we formed Aspen. As a result of hard work, determination and an unwavering dedication to our clients, Aspen is now a force in the reinsurance and insurance markets with over $12 billion of assets and around 1,150 employees,” said O’Kane.
“I am extremely proud of our accomplishments and I cherish the relationships and friendships, both within Aspen and in the broader market, which we formed along the way. I would like to thank all my colleagues at Aspen as well as our clients and brokers for all their considerable support over the years and it delights me to see Aspen poised to go from strength to strength under the new leadership of Mark Cloutier. I wish Mark and Aspen every success for the future.”
Cloutier commented: “I am honored to be appointed as the next CEO of Aspen. I truly believe that the company benefits from strong underwriting talent and specialized expertise, which makes it ideally positioned to deliver innovative solutions to the increasingly complex risks faced by its customers. I am very excited about what Aspen can achieve in the coming years. I would like to thank Chris for his key role and support over the last few months and for making the transition from public to private so seamless. He has built an impressive franchise over the past 17 years and we wish him well in his future endeavors.”
Apollo was advised by Willis Towers Watson and Libero Ventures and Sidley Austin LLP served as its legal counsel on this transaction. Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC acted as financial advisors to Aspen and Willkie Farr & Gallagher LLP served as its legal counsel on this transaction.
- Aspen Contacted More Than Two Dozen Potential Buyers, Filing Says
- Aspen Insurance CEO O’Kane Issues Statement That He Will Step Down in 2019
- Cloutier to Step Down as Brit’s Exec. Chairman, with Plans to Become CEO of Aspen
- Private Equity Firm Apollo to Buy Aspen Insurance for $2.6 Billion
- Aspen’s Restructuring Continues – To Improve Results, Preserve Shareholder Value
- Aspen Ceases Underwriting Property Insurance from Bermuda Platform
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