LibertyMutual Insurance announced Monday morning it will acquireglobal specialty lines company Ironshore Inc. from Fosun International Ltd. for approximately$3 billion.

The purchase price — which is subject to closing priceadjustments — will equate to 1.45x Ironshore's actual tangiblebook value as of year-end 2016. The transaction is expected toclose in the first half of 2017 pending regulatory approvals andcustomary closing conditions.

After the acquisition is completed Ironshore will continue tooperate with the same management team and brand, but as part of thelarger Liberty Mutual organization, which seeks to grow itsspecialty lines operations.

Ironshore, which was founded in 2006, had gross premiums writtenof $2.2 billion in 2015 and is one of the 10 largest E&S linesinsurers in the U.S. The company, which has approximately 800employees located in 15 countries worldwide, is organized intothree operating hubs based in the U.S., Bermuda and London.

As of December 31, 2015, Liberty Mutual had $121.7 billion inconsolidated assets, $102.5 billion in consolidated liabilities,and $37.6 billion in annual consolidated revenue. The insureremploys more than 50,000 people in over 800 offices throughout theworld.

“We are pleased to have Ironshore and its proven management teamled by CEO Kevin H. Kelley join Liberty Mutual,” Liberty MutualChairman and CEO David H. Long said in astatement. “Ironshore has a track record of profitablyunderwriting global and diverse specialty risks insurance and is anideal complement to Liberty Mutual, providing additional scale,expertise, innovation and market relationships to our $5 billionGlobal Specialty business.”

“The combination of Ironshore and Liberty Mutual is a win-winproposition and value creating for both companies,” Ironshore CEOKevin H. Kelley said in a statement. “Ironshore will becomepart of another 'A' rated company with a global reach, a strongbalance sheet, wide client base and a much greater capacity todrive profitable growth.

“Today's announcement of the transaction is beneficial for allthree parties involved and is the culmination of a careful andconsidered process,” Kelley added. “We have aimed for the bestpossible outcome for our employees, clients and business partnersand are confident this transaction achieves these goals and more. …With more than $120 billion of assets, Liberty Mutual is a globalFortune 100 company with an A rating from A.M. Best, S&P andMoody's that gives us access to a larger balance sheet, additionalproduct lines and greater reinsurance and underwritingcapacity.”

Ironshore provides broker-sourced specialty P&C insurancecoverage for varying risks throughout the world. Selectspecialty policies are underwritten through its Lloyd'ssyndicate.

Barclays Capital Inc. acted as financial advisor and Skadden,Arps, Slate, Meagher & Flom LLP provided legal advice toLiberty Mutual Insurance in the transaction.

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