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Enstar closes $200mn investment in AmTrust go-private deal

7th December 2018 - Author: Matt Sheehan

Bermuda-based insurance, reinsurance and run-off specialist Enstar has closed a $200 million investment in Evergreen Parent L.P., which acquired 100% of AmTrust Financial Services, Inc. in a go-private deal last week.

EnstarEnstar said that it now collectively owns around 7.4% of the capital units of Evergreen, which is an entity formed by private equity funds managed by Stone Point Capital LLC, together with Barry Zyskind, Chairman and Chief Executive Officer (CEO) of AmTrust, George Karfunkel and Leah Karfunkel.

AmTrust became a wholly owned subsidiary of Evergreen after it accepted an offer price of $14.75 per share for the 45% of its shares not already owned by Stone Point and the Karfunkel-Zyskind family.

The deal valued the fully diluted equity of AmTrust at approximately $2.95 billion, excluding outstanding preferred stock.

Back in July, it was reported that Enstar and private equity firm Madison Dearborn Partners were to fund a $350 million portion of the transaction.

Stone Point and the Karfunkel-Zyskind Family originally proposed to acquire AmTrust’s remaining shares in January 2018 for a price of $12.25 per share, but raised their offer first to $13.50 per share in March and later to $14.75 per share in June.

Trading in AmTrust’s common stock was suspended following the completion of the acquisition, and it was delisted from the NASDAQ Stock Market.

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