Tiptree Financial is to sell its subsidiary Philadelphia Financial Group to funds managed by the tactical opportunities group of The Blackstone Group for approximately USD155 million in cash plus additional consideration of approximately USD10 million to be paid over two years.
The transaction, which including both Tiptree’s third party administration and life insurance operations, is subject to customary closing conditions including regulatory approval and is expected to close in the third quarter of 2015.
Houlihan Lokey Financial Advisors acted as financial advisor to Tiptree and rendered a fairness opinion to its board of directors in conjunction with this transaction. Lazard acted as financial advisor to Blackstone. Hannover Re is providing financing for the transaction. Schulte Roth & Zabel served as legal counsel to Tiptree. Debevoise & Plimpton served as legal counsel to Blackstone.
