NEW YORK, July 24, 2018 /PRNewswire/ -- Evergreen
Parent, L.P. ("Evergreen"), an entity formed by private equity
funds managed by Stone Point Capital LLC ("Stone Point") and the Karfunkel-Zyskind Family,
has entered agreements with an entity affiliated with private
equity firm Madison Dearborn Partners ("MDP") and Enstar Group
Limited (NASDAQ: ESGR) ("Enstar"). Under the terms of this
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 shares of common stock of AmTrust
Financial Services, Inc. (NASDAQ: AFSI) ("AmTrust") that the
Karfunkel-Zyskind Family and certain of its affiliates and related
parties do not presently own or control. 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.
MDP, based in Chicago, is a
leading private equity investment firm in the United States, with significant insurance
industry experience. Enstar, based in Bermuda, is a multi-faceted insurance group,
with over $15.6 billion in assets,
that offers innovative capital release solutions and specialty
underwriting capabilities through its network of group
companies.
Subject to the terms and conditions of their respective
agreements with Evergreen, MDP and Enstar will collectively
contribute a total of $350 million to
Evergreen in exchange for equity interests in Evergreen to
partially fund a portion of the take-private transaction of
AmTrust. The previously disclosed equity commitments of an
investment fund affiliated with Stone
Point and an investment entity controlled by the
Karfunkel-Zyskind Family in the take-private transaction, will be
reduced proportionately as a result of the participation by MDP and
Enstar in the equity financing.
As previously disclosed in the amended merger agreement, 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, 2018, and is expected to close during
the second half of 2018, subject to the satisfaction of customary
closing conditions, including approval by regulatory
authorities.
"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. "With this investment we are confident
in AmTrust's ability to continue serving its partners, brokers,
agents and clients through innovation and service excellence."
"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," said Dominic Silvester, director and Chief Executive
Officer of Enstar Group Limited.
About AmTrust Financial Services, Inc.
AmTrust Financial Services, Inc., a multinational insurance holding
company headquartered in New York,
offers specialty property and casualty insurance products,
including workers' compensation, commercial automobile, general
liability and extended service and warranty coverage through its
primary insurance subsidiaries rated "A-" (Excellent) by A.M. Best.
AmTrust is included in the Fortune 500 list of largest companies.
For more information about AmTrust visit
www.amtrustfinancial.com.
About Stone Point Capital
Stone Point Capital LLC (www.stonepoint.com) is a financial
services-focused private equity firm based in Greenwich, CT. The firm has raised and managed
seven private equity funds — the Trident Funds — with aggregate
committed capital of approximately $19
billion. Stone Point targets
investments in the global financial services industry, including
investments in companies that provide outsourced services to
financial institutions, banks and depository institutions, asset
management firms, insurance and reinsurance companies, insurance
distribution and other insurance-related businesses, specialty
lending and other credit opportunities, mortgage services companies
and employee benefits and healthcare companies.
About Madison Dearborn Partners, LLC
Madison Dearborn Partners, LLC (MDP), based in Chicago, is a leading private equity
investment firm in the United
States. Since MDP's formation in 1992, the firm has raised
seven funds with aggregate capital of approximately $23 billion and has completed approximately 130
investments. MDP is currently investing out of its most recent
fund, $4.4 billion MDCP Fund VII, in
businesses across a broad spectrum of industries, including
financial and transaction services; basic industries; business and
government services; health care; and telecom, media and technology
(TMT) services. For more information, please visit
http://www.mdcp.com.
About Enstar Group Limited
Enstar is a multi-faceted insurance group, with over
$15.6 billion in assets, that offers
innovative capital release solutions and specialty underwriting
capabilities through its network of group companies in Bermuda, the United
States, the United Kingdom,
Continental Europe, Australia, and
other international locations. Enstar is a market leader in
completing legacy acquisitions, having acquired over 80 companies
and portfolios since its formation in 2001. Enstar's active
underwriting businesses include the StarStone group of companies,
an A- rated global specialty insurance group with multiple global
underwriting platforms, and the Atrium group of companies, which
manage and underwrite specialty insurance and reinsurance business
for Lloyd's Syndicate 609. For further information about Enstar,
see www.enstargroup.com.
Forward Looking Statements
This press release contains statements regarding the proposed
transaction that may be deemed to be "forward-looking statements"
within the meaning of applicable securities laws and the
Karfunkel-Zyskind Family, Stone
Point or Enstar may make related oral, forward-looking
statements on or following the date hereof. Forward-looking
statements, by their nature, are subject to a variety of inherent
risks and uncertainties that could cause actual results to differ
materially from the results projected. Many of these risks and
uncertainties cannot be controlled by the Karfunkel-Zyskind Family,
Stone Point or Enstar and include
the possibility that the proposed transaction may not be completed
on the terms described in this press release or at all, including
as a result of changes in the business or prospects of AmTrust. Any
forward-looking statements in this press release are made only as
of the date of this press release. None of the Karfunkel-Zyskind
Family, Stone Point, MDP or Enstar
assumes any obligation to publicly update any forward-looking
statements except as required by law. No information
contained on any website referenced in this press release is
incorporated by reference herein.
Contact
Deborah Kostroun
Ketchum Zito Financial
Email: deborah.kostroun@ketchumzito.com
Phone: 201-403-8185
For Madison Dearborn Partners:
Chuck Dohrenwend or Kate Murray
Abernathy MacGregor
Email: cod@abmac.com or ksm@abmac.com
Phone: 212-371-5999
View original
content:http://www.prnewswire.com/news-releases/madison-dearborn-partners-and-enstar-group-limited-enter-into-agreements-with-evergreen-parent-lp-to-participate-in-portion-of-equity-financing-for-take-private-transaction-of-amtrust-financial-services-300685968.html
SOURCE Evergreen Parent, L.P.