AmTrust Financial Services Announces Completed Transfer of its 51% Stake in a Portion of U.S. Fee Businesses to Madison Dearb...
February 28 2018 - 5:00PM
AmTrust Financial Services, Inc.
(Nasdaq:AFSI)
(the “Company” or
“AmTrust”) today announced it closed the transfer of a 51%
equity interest in certain of its U.S.-based fee businesses to
Madison Dearborn Partners (“MDP”), a leading private equity
investment firm. This transaction had previously been announced on
November 6, 2017.
“This transaction close marks a significant milestone in our
efforts to unlock value and build a stronger capital base for
AmTrust, while positioning both AmTrust and the U.S. fee companies
for continued, profitable growth,” said Barry Zyskind, Chairman and
CEO of AmTrust. “We thank all of the AmTrust and U.S. fee business
employees for their hard work in closing this transaction and look
forward to participating in the continued success of the new
company as a significant shareholder.”
The divested portion of the U.S. fee businesses has become a
newly formed company under the brand name of The Amynta Group
(“Amynta”). Amynta has operations in warranty and services
contracts for the automotive, consumer products and specialty
equipment industries, among others, and administration of niche
workers' compensation and contractor liability coverage in the
United States on behalf of AmTrust and other carriers. The new
company has more than 1,500 employees and is headquartered in New
York. Stuart Hollander, who most recently served as AmTrust’s
President, Specialty Risk, North America, will serve as Amynta’s
CEO.
BofA Merrill Lynch served as financial advisor to AmTrust in
connection with the transaction, and Debevoise & Plimpton LLP
was legal counsel. Kirkland & Ellis LLP acted as legal advisor
to MDP.
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 The Amynta Group
The Amynta Group is an industry leading group of managing
general agents, third party administrators and warranty companies.
This collection of professionals and firms provides warranty and
services contracts for the automotive, consumer products and
specialty equipment industries, among others, and administers niche
workers' compensation and contractor liability coverage in the
United States on behalf of AmTrust and other carriers. The Amynta
name is derived from antiquity and means “protector,” which
underscores the company’s focus and commitment to bringing industry
leading products and services to its wide range of clients and
customers. Amynta plans to invest in growing and maintaining its
market leading position with a focus on ensuring a high performing
work culture, product innovation and market expansion.
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.
Forward-Looking Statements
This news release contains certain forward-looking statements
that are intended to be covered by the safe harbors created by the
Private Securities Litigation Reform Act of 1995. When we use words
such as “anticipate,” “intend,” “plan,” “estimate,” “expect,” or
similar expressions, we do so to identify forward-looking
statements. Actual results may differ materially from those
projected. The projections and statements in this news release
speak only as of the date of this release, and neither AmTrust nor
MDP undertakes any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by law.
Additional information about the general risk factors that could
cause AmTrust’s actual results to differ materially from those
projected is contained in our filings with the SEC, including our
Annual Report on Form 10-K and our quarterly reports on Form
10-Q.
For more information, please contact:
AmTrust Financial Services
Chaya CooperbergChief Communications Officer & SVP Corporate
Affairschaya.cooperberg@amtrustgroup.com (646) 458-3332
Jisoo SuhDirector of Investor
Relationsjisoo.suh@amtrustgroup.com (646) 458-3367
Hunter HoffmannGlobal Director of Public
RelationsHunter.Hoffmann@amtrustgroup.com 646.458.3362
Madison Dearborn Partners and The Amynta
Group
Chuck Dohrenwend or Emily WardAbernathy MacGregorcod@abmac.com /
emw@abmac.com(212) 371-5999
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