Legacy acquirer DARAG Group has announced the planned sale of its North American and Bermuda business entities to RiverStone Group. The transaction, which is subject to regulatory approvals, is expected to be completed by the end of the year.
DARAG highlights that both its North American and Bermuda operations have established a solid presence in their niche markets. DARAG and RiverStone Group said that they will work together to ensure a smooth transition for the business entities and their active transaction pipeline.
The sale is part of DARAG's strategy to streamline its operations and concentrate on its core European market. The transaction will also provide DARAG with additional capital to advance its pipeline of European transactions, several of which are already in advanced negotiation stages.
Tom Booth (pictured above), CEO of DARAG, said that the group was pleased to transfer this well-established niche business to RiverStone. He also highlighted the opportunity the transaction presents for DARAG to focus its resources on its European business, where the group maintains a strong, well-capitalized position.
Read More: DARAG inks SPA to purchase Cayman captive
RiverStone Group president Bob Sampson said that integrating DARAG's North American team will add valuable talent to RiverStone's teams.
“This acquisition perfectly fits our growth strategy, bolstering our capabilities and significantly boosting our market visibility in several North America insurance segments. We're confident that this transaction will fuel innovation, inspire superior service, and create a powerful synergy that benefits our clients,” Sampson said.
DARAG was advised on the transaction by PJT Partners and Nomura as lead financial advisers, RBC as financial adviser, and Proskauer Rose LLP as legal adviser. RiverStone was represented by Norton Rose Fulbright US LLP as legal advisers.
What are your thoughts on this story? Please feel free to share your comments below.
