Deerfield, Ill.-based Alera Group Inc. signed a definitive agreement to merge with Propel Insurance Agency headquartered in Tacoma, Wash.
Propel’s property/casualty capabilities are expected to bolster Alera Group’s presence in the Northwest and Southeast regions. The Propel merger adds 485 employees and eight new locations, bringing Alera Group’s workforce to nearly 3,000.
Alera Group will also undergo a recapitalization. Alera Group has secured new capital from its existing private equity partner, Genstar Capital, which helped form the company in 2017, as well as from Propel’s current capital partner, Flexpoint Ford, a Chicago-based private equity firm specializing in the financial services and healthcare industries.
The transaction is expected to close this year and is subject to customary closing conditions and regulatory approvals. Evercore is serving as financial advisor to Alera Group and Barclays is serving as financial advisor to Flexpoint Ford and Propel.
Following consummation of the deal, the Propel team will continue serving its existing clients in its existing roles. Financial terms of the deal were not disclosed.
Alera Group is an independent insurance and wealth management firm offering employee benefits, property/casualty, retirement services and wealth management solutions to clients nationwide.
Propel provides insurance solutions, risk consulting, workers’ comp cost containment and employee benefits.
Was this article valuable?
Here are more articles you may enjoy.