AmTrust Financial Services to Acquire Republic Companies for ~$233M

AmTrust Financial Services, Inc. AFSI today announced that it has entered into an agreement to acquire Republic Companies, Inc and its affiliates ("Republic") from Delek Group Ltd. DLEKG, and Republic Insurance Holdings, LLC., for approximately $233 million, which is subject to purchase price adjustments. The purchase price will be a combination of $113 million in upfront cash, a $105 million note issued by AmTrust to Delek Group Ltd bearing annual interest of 5.75% with a four year maturity and cash payments to be made over five years. Pending regulatory approval, the parties anticipate closing will occur during the first half of 2016. Texas based Republic has been providing property/casualty insurance for over 100 years. In 2014, Republic reported total direct premiums of approximately $711 million. The majority of the business is written in the Southwestern states. In addition, Republic generates fee revenue by providing insurance services to third parties. "Republic is an excellent addition to our Company's property/casualty and service and fees businesses. The combination of Republic's well-established business and brand with AmTrust's efficient operating platform and strong balance sheet offers great opportunities for profitable growth especially in Republic's key Southwestern markets," See full press release