Investors Take Direct General Private

Nashville-based Direct General has been taken private by a group of investors in a deal completed today, the parties said.

Calera Capital, formerly Fremont Partners, and TPG Capital, formerly Texas Pacific Group, announced the completion of the acquisition of Direct General Corporation by an affiliate of Calera and TPG in a deal valued at $643 million including assumed debt.

Prior to the acquisition announced last December, Direct was a publicly traded company.

Under the terms of the transaction, Direct stockholders are entitled to receive $21.25 in cash for each share of common stock, without interest and less any withholding.

Headquartered in Nashville, the Direct group deals in nonstandard personal automobile insurance, term life insurance, premium finance and other consumer finance products.

Direct's subsidiaries distribute their products and serve their customers through over 500 company-owned retail stores in 13 states, primarily in the Southeast.

With the closing of the acquisition, Direct said it has appointed Daniel Tarantin, 39, as chief executive officer and a member of its board of directors. William Adair, the company's current chairman and CEO, has retired but will continue to serve on the company's board of directors.

Commenting on the acquisition, Mark Williamson, a managing partner of Calera Capital and the incoming chairman of Direct, said, “We look forward to working in partnership with Direct's management team and TPG to build on the company's strong foundation and to continue its profitable growth.”