Bermuda-based insurance, reinsurance and run-off specialist Enstar and private equity firm Madison Dearborn Partners are to fund a $350 million portion of the AmTrust Financial Services take-private transaction.
Under the terms of the agreement, each of MDP and Enstar will participate in a portion of the previously-disclosed take-private purchase of approximately 45% of the issued and outstanding AmTrust shares.
MDP and Enstar will own a minority equity position in AmTrust once the take-private transaction is completed, with Stone Point and the Karfunkel-Zyskind Family owning the balance.
“We are excited to join with Enstar, the Karfunkel-Zyskind Family, and Stone Point and have the opportunity to invest in AmTrust itself. Following our acquisition earlier this year of a number of AmTrust’s U.S fee businesses, which is now called The Amynta Group, we have come to know AmTrust and the management team well,” said Vahe Dombalagian, a Managing Director on the MDP Financial & Transaction Services team.
The proposed transaction values the fully-diluted equity of AmTrust at approximately $2.95 billion, excluding AmTrust’s outstanding preferred stock.
The take-private transaction was approved by AmTrust’s stockholders on June 21 and is expected to close during the second half of 2018.
“With this investment we are confident in AmTrust’s ability to continue serving its partners, brokers, agents and clients through innovation and service excellence,” added Dombalagian.
Dominic Silvester, director and Chief Executive Officer of Enstar Group Limited, said, “We are pleased to partner with the Karfunkel-Zyskind Family, Stone Point, and MDP in this investment opportunity, and believe that AmTrust will benefit from this combination of experienced investors.”
