Montalvo Insurance Agency has sold its insurance business to cashed-up Utah-headquartered brokerage PCF Insurance Services for an undisclosed sum.
Earlier this year, PCF successfully raised $400 million in incremental debt financing in a round lead by Blue Owl. The raising, which was increased from an initial $300 million target after high levels of investor interest, means that the cashed-up insurance company has been able to continue its strong buying spree.
Lifting the lid on the transaction, PCF Insurance chief development officer Brooke K. DeWyze (pictured) confirmed that the acquisition was largely motivated by Montalvo’s strong public entity sector business. “Having served its southern Texas community for more than 65 years, the Montalvo Insurance team has deep-rooted relationships with their clients, especially in the public entity sector, and that’s one of the aspects we review when looking to bring new teams on board. The acquisition will be the 6th location for PCF in the Lone Star state.
The seven-person agency was founded by Ramon Montalvo II, who handed the business to his son who also sits as a board member at Freedom Bank.
PCF Insurance’s acquisition strategy focuses on partnering with businesses that aim to grow by leveraging extensive industry experience.
Although there has been no discussion of redundancies, PCF hopes that the Montalvo team will gain from the operational efficiencies and economies of scale available through integrated support in areas including marketing, business intelligence, technology, human resources, accounting, and legal and compliance.
The acquisition comes on the heels of PCF Insurance’s quadruple swoop in June for Pennsylvania-based Ignitist, North Carolina’s The Brady Agency, Roseberry Insurance Agency in Mississippi, and The Sinnott Agency from Iowa.
At the time, DeWyze pointed out: “At PCF Insurance, we are committed to accelerated and strategic expansion through M&A – not to be confused with high-volume.
“Our approach to M&A enables us to grow our operations in key markets – based on our analysis for growth potential and alignment with our current footprint – while ensuring that each new business that we integrate aligns with our long-term vision and enhances our capabilities and specialization in key industry verticals.”
With 280 offices, PCF is one of the 20 biggest insurance brokers in the country, and claims over 420,000 clients.
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