Tags: amwins | insurance | m&a

Insurance Wholesaler AmWINS Said for Sale

Tuesday, 13 Mar 2012 06:15 PM

The owners of AmWINS Group Inc., the largest wholesale insurance broker in the United States by premiums placed, have put the company up for sale, expecting a valuation of about $1.5 billion, three people familiar with the matter said on Tuesday.

An auction for a majority stake in AmWINS, which owns brokerage, underwriting and group benefit operations across 21 countries, is underway and has attracted interest from private equity firms and strategic buyers, the people said.

AmWINS is owned by its management and by buyout firm Parthenon Capital Partners LLC. Parthenon plans to sell its 50 percent stake and management will also be ceding some of its ownership, offering the buyer control of AmWINS, one of the people said. The exact stake for sale is open to negotiations, the person added.

A $1.5 billion enterprise valuation for AmWINS would equate to about 13 times its 2011 earnings before interest, tax, depreciation and amortization (EBITDA) of $117 million, another person said.

Representatives of AmWINS and Parthenon did not immediately respond to a request for comment.

Deal making in the U.S. financial services sector has been subdued for private equity firms, although a couple of buyout firms recently exited from investments in insurance companies.

Last month, BB&T Corp agreed to pay $570 million in cash for the life, property and casualty insurance operations of Crump Group Inc - the second largest wholesale insurance distributor in the United States - to J.C. Flowers & Co LLC, about nine times projected EBITDA and 1.8 times projected revenue.

U.S. insurance broker Brown & Brown Inc said in December it agreed to buy Arrowhead General Insurance Agency Inc for $395 million in cash from Spectrum Equity Investors, JMI Equity and a management equity-holder group.

Parthenon bought a majority percent stake in AmWINS in 2005. AmWINS subsequently registered for an initial public offering, but withdrew the filing in 2007. The company has since grown aggressively through acquisitions and currently handles over $6.7 billion in annual premiums.

Financial Technology Partners LP is advising AmWINS on the sale, while Goldman Sachs Group Inc is providing staple financing for the transaction.

© 2017 Thomson/Reuters. All rights reserved.

 
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2012-15-13
Tuesday, 13 Mar 2012 06:15 PM
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