Markel Corp. has agreed to acquire surety firm SureTec for approximately $250 million, inclusive of a three-year earn out.
SureTec is one of the largest privately owned surety companies in the U.S. SureTec’s largest subsidiary, SureTec Insurance Co., is rated A (Excellent) by A.M. Best. In partnership with surety producers and independent agents, it specializes in small-to-midsize contract bonds and commercial surety. SureTec operates in 50 states and has one international affiliate. The company has offices in Atlanta, Austin, Dallas, Houston, San Antonio, San Diego, and Orange County, California.
Following the acquisition, SureTec will operate as a separate business unit, with John T. Knox Jr., SureTec’s current chairman and chief executive officer, leading his team in his current capacity. The operating unit will become part of Markel’s Specialty division and U.S. Insurance segment.
The transaction is expected to close in the first half of 2017.
TigerRisk Capital Markets & Advisory served as financial advisor and Sidley Austin LLP served as legal advisor to Markel. Locke Lord LLP served as legal advisor to SureTec.
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