Trean Insurance Group has announced that it has entered into a definitive merger agreement with affiliates of Altaris, which currently owns approximately 47% of Trean’s outstanding common stock.
The transaction, which implies a total equity value for Trean of approximately $316 million, is expected to close during the first half of 2023.
Under the terms of the agreement, Altaris will acquire all of the common stock that it does not currently own for $6.15 in cash per share, representing a 97% premium to Trean’s closing price on December 15, 2022.
Full completion of the transaction is subject to closing conditions, which include obtaining approval of a majority of the outstanding shares of Trean common stock held by stockholders that are not affiliated with Altaris and receiving certain regulatory approvals.
Following the closing of the transaction, it is expected that Julie Baron will remain President and Chief Executive Officer of Trean and that Andrew O’Brien, the founder of Trean and Executive Chairman of the Board, will continue to serve on the Board.
The Company is expected to maintain its headquarters in Wayzata, Minnesota.
Baron, commented, “This agreement with Altaris delivers immediate and substantial value to all stockholders of Trean while positioning the Company to continue its focus on strong partnerships, underwriting discipline and exceptional claims management to drive growth over the long term.
“As a long-term investor in the Company, Altaris is deeply familiar with our business and recognizes the value of our talented team, and we look forward to Altaris’ continued contributions to Trean as a private company.”
Daniel Tully, Co-Founder and Managing Director of Altaris, said, “We have known Trean for many years and have long admired their disciplined program partner selection, prudent financial management and a world-class team.
“We believe that Trean’s specialty insurance products and services are highly differentiated in the market, and we look forward to contributing our resources and expertise to support the Company’s next phase of growth.”
When the transaction is completed, Trean will become a privately held company and its common stock will no longer be traded on Nasdaq.
