Legacy acquirer DARAG will sell North American and Bermuda units to Fairfax’s RiverStone

DARAG Group, the Malta-based legacy acquisition company, has announced that it has agreed to sell its North American and Bermuda business entities to RiverStone Group, a subsidiary of Fairfax Financial Holdings Ltd.

The sale, which is subject to regulatory approvals, is expected to close by the end of the year. Financial details were not disclosed.

DARAG said the deal streamlines its operations and allows the group to focus on its core European business, bringing in additional capital “to execute its strong pipeline of European deals, many of which are in advanced stages of negotiation”.

“We are excited to pass this excellent and well-established niche business into the hands of a great company like RiverStone,” commented Tom Booth, CEO of DARAG.

Booth said the deal gives DARAG the opportunity to focus on its European core. “Our strong, well-capitalized niche position and good market conditions give us great optimism for our European business,” he said.

DARAG and RiverStone Group said they are committed to ensuring there is no disruption to business entities and their transaction pipeline.

“This acquisition is a perfect fit with our growth strategy, strengthening our capabilities and significantly increasing our market visibility across multiple insurance segments in North America. We are confident that this transaction will fuel innovation, inspire superior service and create a powerful synergy that benefits our customers,” Bob Sampson, president of RiverStone, said in a statement.

Another legacy buyout specialist, R&Q Insurance Holdings Ltd., was placed into liquidation in Bermuda in June after facing months of unfavorable loss development and other cash flow issues that prompted the company to sells property/data program management subsidiary Accredited to Canadian private equity firm Onex Partners. That sale was successfully completed at the end of June.

DARAG was advised by PJT Partners and Nomura as lead financial advisor, RBC as financial advisor and Proskauer Rose LLP as legal advisor. RiverStone’s legal advisors were Norton Rose Fulbright US LLP.

About DARAG

DARAG is a leading international insurance and reinsurance group specializing in the assumption of discontinued businesses and the provision of capital and operational support solutions. The group completed 67 last-minute transactions in 21 countries, with a value of more than 1.7 billion euros ($1.9 billion).

Source: DARAG

TOPICS
Mergers and acquisitions