Filed Under:Agent Broker, E&S/Specialty Business

Insurance Wholesaler AmWINS in $1.3B Recapitalization Deal

April 17 (Reuters) - AmWINS Group Inc, the largest wholesale insurance broker in the United States by premiums placed, said it reached an agreement with private equity company New Mountain Capital for a $1.3 billion recapitalization.

The deal will end AmWINS' relationship with buyout firm Parthenon Capital Partners LLC, which had bought a majority stake in the company in 2005.

Last month, Reuters had reported that Parthenon and AmWINS management, who jointly own the company, were looking for buyers and expecting a valuation of about $1.5 billion.

Alok Singh, Managing Director of New Mountain, said the firm was in talks with AmWINS' management for over a year.

Employee shareholders will continue to own more than 30 percent of the company's equity, which is valued at over $160 million, after the recapitalization, the company said in a statement.

The Charlotte, North Carolina-based company, which withdrew a proposed initial public offering in 2007, has grown aggressively through acquisitions and currently handles over $7 billion in annual premiums.

Financial Technology Partners, Goldman Sachs and Willis Capital Markets & Advisory acted as financial advisers to AmWINS. Credit Suisse and Macquarie Capital advised New Mountain.

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