The Blackstone Group and management and employees of Alliant Insurance Services, one of the largest US insurance brokerage firms, have agreed to acquire the California-based firm from its
The Blackstone Group and management and employees of Alliant Insurance Services, one of the largest US insurance brokerage firms, have agreed to acquire the California-based firm from its current owner, the New York private equity firm Lindsay Goldberg, in a transaction whose terms were not disclosed.
‘This is an exceptional opportunity for our company, our clients and our employees,’ says Alliant chairman and chief executive Tom Corbett, who heads a senior management team that includes chief financial officer Greg Zimmer and chief operating officer Jerry Hall.
‘Blackstone’s financial resources and commitment to work strategically with management teams will enable our firm to continue to expand. Lindsay Goldberg has been an invaluable partner to our management team in positioning our company to take this next stage.
‘This transaction is a validation of the success of our business plan which is to be the industry leader in organic growth and operating productivity through a commitment to industry specialisation, client service, and a team-based approach. This transaction will enable Alliant to remain independent and maintain its position as the premier US specialty insurance broker.’
Says Blackstone senior managing director Chinh Chu: ‘Blackstone is pleased to invest in Alliant in partnership with its management team and employees. Alliant is an attractive platform due to its market leadership in its core segments, superior growth prospects, and world-class management. We are also impressed with the Alliant culture and the strength and depth of the insurance professionals who comprise the foundation of the company.’
Partner Lance Hirt of Lindsay Goldberg, which manages USD5.1bn in equity capital, adds: ‘Alliant is an excellent company led by the strongest management team we have seen in this industry. We wish Tom, Greg, Jerry and the rest of the Alliant team every success in the future.’
The transaction is expected to be completed by the middle of September. JPMorgan acted as exclusive financial advisor to the seller and is also arranging financing for the buyer in connection with the transaction. Weil, Gotshal & Manges acted as legal counsel to the seller and Simpson Thacher & Bartlett acted as counsel to the buyer.
Based in Newport Beach, California, Alliant Insurance Services provides insurance and employee benefits products to more than 20,000 commercial clients in the US and distributes specialty-oriented products among public entities, Native American nations, healthcare, energy, law firms, real estate, construction and other industry groups.
The Blackstone Group is one of the largest independent alternative asset managers in the world with businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds, as well as financial advisory services including mergers and acquisitions advisory, restructuring and reorganisation advisory and fund placement services.
