Private equity firm Apollo takes Aspen Insurance private in $2.6bn deal
Aspen Insurance said today that funds associated with private equity firm Apollo Global Management had agreed to take it private in a $2.6bn deal.
The Bermuda-headquartered insurer, which is listed in the US, has significant UK operations with offices in London, Birmingham, Bristol, Chelmsford, Croydon, Glasgow, Leeds and Manchester.
Apollo will pay $42.75 per share, representing a 6.6 per cent premium to Aspen stock’s closing price on Monday.
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The deal, which is expected to close in the first half of 2019, has been approved by Aspen’s board after a strategic review.
Alex Humphreys, a partner at Apollo, said: “We believe that Aspen benefits from strong underwriting talent, specialised expertise and longstanding client relationships which makes them well positioned in the market. We look forward to working with Aspen to build on the existing high quality specialty insurance and reinsurance business and we aim to leverage Apollo’s resources and deep expertise in financial services to support the company as it embarks on its next chapter.”
Aspen, which reported a loss of about $15m in the second quarter, has been exploring a potential sale since early this year.
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The company suffered losses in three out of last four quarters, hit by hurricanes, the California wildfires and the Mexican earthquakes.
Goldman Sachs and JP Morgan Securities acted as financial advisers to Aspen, while Apollo was advised by Willis Towers Watson and Libero Ventures.