BOSTON, Aug. 24, 2021 /PRNewswire/ -- Berkshire
Hills Bancorp, Inc. (NYSE: BHLB) and Brown & Brown, Inc. (NYSE:
BRO) today announced the execution of a definitive agreement for
the sale of the assets and operations of Berkshire Insurance Group,
Inc. (BIG), a subsidiary of Berkshire Hills, to Brown & Brown
of Massachusetts, LLC, a
subsidiary of Brown & Brown. The transaction is subject to
customary conditions and is expected to be completed in the third
quarter.
BIG has been providing insurance coverage to customers across
the Northeast since its inception in 2000, growing into one of the
largest insurance agencies in Western
Massachusetts. They provide personal and commercial property
and casualty insurance solutions.
"Consistent with Berkshire's
Exciting Strategic Transformation (BEST) program, this transaction
allows us to simplify our operating model, repurpose valuable
resources and redeploy capital to support core businesses and
strategic initiatives that will enhance long term stakeholder
value," stated Berkshire CEO, Nitin J.
Mhatre. "As a result of this transaction, we will record a
net gain on sale of approximately $0.55 per share on a GAAP basis in the third
quarter, and anticipate $0.02 lower
earnings per share in the second half of 2021."
Sean Gray, President & COO of
Berkshire Bank added, "Berkshire
has entered into an exciting partnership with Brown & Brown
through which we will be able to serve our customers better with an
expanded offering of insurance solutions. I also want to thank the
dedicated team of employees at BIG, whom I've had the privilege of
working alongside for the past ten years, for their contributions
to Berkshire and all our
communities. I know they will continue to serve Berkshire customers well in their new roles
with Brown & Brown."
Brown & Brown has offered positions to existing BIG
employees resulting in no job eliminations. Following the
acquisition, BIG will become a new stand-alone operation within
Brown & Brown's Retail Segment under the leadership of
John Flaherty. BIG's offices
in Greenfield, Longmeadow, Pittsfield, Stockbridge, and Westfield, Massachusetts will continue to
operate from their current locations, and its other locations will
physically combine with existing Brown & Brown offices. In
addition, through a partner relationship, Berkshire Bank will
continue to refer customers to Brown & Brown. Don
McGowan, a Regional President in Brown & Brown's Retail Segment
with responsibility for various offices in Massachusetts and the Northeast, will oversee
the new, combined operations.
McGowan stated, "This transaction allows us to further expand
our footprint in Massachusetts
with several new strategic locations that we believe enable us to
better serve our customers. We are excited to welcome all of the
talented BIG teammates to the Brown & Brown organization and
look forward to finding fresh opportunities to offer a wide range
of insurance products and services to new and existing
customers."
RBC Capital Markets is acting as financial advisor to
Berkshire and Luse Gorman, PC is acting as legal advisor to
Berkshire on this transaction.
ABOUT BERKSHIRE HILLS
BANCORP
Berkshire Hills Bancorp is the parent of Berkshire
Bank, which is transforming what it means to bank its neighbors
socially, humanly and digitally to empower the financial potential
of people, families and businesses in its communities as it pursues
its vision of being the leading socially responsible omni-channel
community bank in the markets it serves. Headquartered in
Boston, Berkshire has $12.3
billion in assets and operates 115 banking offices primarily
in New England and New York.
ABOUT BROWN & BROWN, INC.
Brown & Brown, Inc.
(NYSE: BRO) is a leading insurance brokerage firm, delivering risk
management solutions to individuals and businesses since 1939. With
more than 11,000 teammates in more than 300 locations across the
U.S. and select global markets, we are committed to providing
innovative strategies to help protect what our customers value
most. For more information, please visit bbinsurance.com.
FORWARD-LOOKING STATEMENTS
This document contains
"forward-looking statements" within the meaning of section 27A of
the Securities Act of 1933, as amended, and section 21E of the
Securities Exchange Act of 1934, as amended. You can identify these
statements from the use of the words "may," "will," "should,"
"could," "would," "plan," "potential," "estimate," "project,"
"believe," "intend," "anticipate," "expect," "target" and similar
expressions. There are many factors that could cause actual results
to differ significantly from expectations described in the
forward-looking statements. For a discussion of such factors,
please see Berkshire's and Brown
& Brown's filings with the Securities and Exchange Commission
and available on the SEC's website at www.sec.gov. Such
factors include those factors relevant to the consummation and
integration of the announced acquisition, including any matters
analyzed in the due diligence process, and material adverse changes
in the business and financial condition of the seller, the buyer,
or both, and their respective customers. All forward-looking
statements made herein are made only as of the date of this
release, and neither Berkshire nor
Brown & Brown undertake any obligation to publicly update or
correct any forward-looking statements to reflect events or
circumstances that subsequently occur or of which either party
hereafter becomes aware.
BERKSHIRE BANK
CONTACTS
|
BROWN & BROWN
CONTACT
|
Investor Relations
Contacts
Kevin Conn, SVP,
Investor Relations & Corporate Development
Email: KAConn@berkshirebank.com
Tel: (617) 641-9206
David Gonci, Capital
Markets Director
Email: dgonci@berkshirebank.com
Tel: (413) 281-1973
Media
Contact:
Gary Levante, SVP,
Corporate Responsibility & Culture
Email: glevante@berkshirebank.com
Tel: (413) 447-1737
|
R. Andrew
Watts Chief Financial
Officer (386)
239-5770
|
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SOURCE Berkshire Hills Bancorp, Inc.; Brown & Brown,
Inc.