AmTrust Financial Services Inc. announced that it has agreed to acquire Republic Companies Inc. and its affiliates (Republic) from Delek Group Ltd. and Republic Insurance Holdings LLC. Republic is based in Dallas.
The purchase price is approximately $233 million, subject to adjustments. 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 percent 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.
Republic provides insurance products and services to individuals and small to medium-size businesses through a network of independent agents primarily in Texas, Louisiana, Oklahoma, Arkansas, Mississippi and New Mexico. In addition, Republic generates fee revenue by providing insurance services to third parties.
Source: AmTrust Financial Services Inc.
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