American Wholesale Insurance Group (AmWINS) announced today that Parthenon Capital, LLC, a Boston-based private equity firm, has acquired a 70 percent majority of its common stock.
The privately-held Charlotte, N.C.-based insurance wholesaler said the employee owners of AmWINS will continue to own 30 percent of the firm. It did not disclose the price paid for the stock.
Parthenon's block of stock, AmWINS said was purchased from a prior private equity investor as well as certain other individual shareholders.
AmWINS reported it handles total yearly premium placements of over $2.4 billion and ranks as the second largest wholesale insurance broker.
"I cannot think of a better organization than Parthenon Capital to make this investment in American Wholesale," M. Steven DeCarlo, AmWINS president and chief executive officer, said in a statement.
He added that Parthenon Capital is a "perfect partner" because the company has a proven track record, expertise in financial services and commitment to work collaboratively with AmWIN's management team to achieve continued growth.
AmWINS said that in addition to acquiring a significant equity position in the company, Parthenon Capital offered new capital to enable the organization to continue to expand its operating platform and pursue additional strategic acquisition opportunities within its three operating segments==property-casualty brokerage, specialty underwriting, and group benefits.
Brian Golson, a partner with Parthenon Capital, said his firm has been focused on investment opportunities in insurance brokerage and services for nearly four years and is "excited about AmWINS' continued growth prospects."
AmWINS, he said, is the "fastest growing major wholesaler in the nation due to its strong organic growth and history of successful acquisitions over the last several years."
Mr. DeCarlo said AmWINS is uniquely positioned in the market with a balanced portfolio of property-casualty and group-benefit clients. He noted that the insurance marketplace is in the midst of significant change resulting from the devastating hurricane losses for property-casualty and "staggering increases in the cost of employee benefits" in the group life and health sector.
Merrill Lynch served as an advisor to American Wholesale for the transaction. Madison Capital Funding LLC, served as administrative agent and lead arranger, and FriedbergMilstein LLC led the credit facilities.
AmWINS serves retail agents in the United States by providing p-c, group life and health, program administration services, and actuarial service capabilities.
Parthenon Capital is a $1.1 billion private equity firm providing strategic resources and capital to middle-market companies for acquisition and internal growth strategies. It said it focuses companies with revenues between $50 million and $500 million, and invests in industries with expertise in business and financial services, healthcare, value-added distribution, niche manufacturing and consumer products.
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