Genstar Capital, a middle market private equity firm that focuses on investments in the life science, healthcare services, software, financial services and industrial technology industries, has acquired Granite Global Solutions, a Canadian provider of risk mitigation services to insurance and corporate clients.
Headquartered in the greater Toronto area, Granite Global operates five business lines: McLarens Canada, a niche claims adjuster; Sibley & Associates, Canada’s largest disability management company; King Reed & Associates, Canada’s largest private investigation company; Henderson Structured Settlements, one of only two national structured settlement companies; and Rochon Engineering, a forensic engineering business.
"Granite has a full suite of risk management and control services whose individual companies are viewed as pre-eminent businesses with the potential to be even stronger competitors in their respective sectors," says J. Ryan Clark (pictured), a principal of Genstar. "As we continue to drive quality service and operations in the existing businesses, we will also identify strategic add-on investments to position Granite as the leading full product claims services business in Canada."
Genstar has developed sector expertise in the insurance services industry with key operating partners and strategic advisory board members, including Dennis Chookaszian, former chief executive of CNA Insurance, Bob Dowdell, former chief executive of Marshall & Swift, and David Wroe, former chief executive of AMS (now Vertafore).
As part of its strategy to grow its insurance services investments Genstar formed Confie Seguros in 2008 to consolidate insurance brokerages primarily focused on the Hispanic consumer. In addition, Genstar portfolio company 21st Services provides life expectancy information to the life settlement industry.
Murray Wallace, chief executive of Granite, says: "We are very pleased to be partnering with Genstar who have a recognised history of investing in Canada and are very knowledgeable about the insurance industry. We will continue the integration of Granite’s business operations, invest to grow each division, and look to develop new ways to serve our customers with integrated products."
Genstar received legal counsel from Latham & Watkins and Ogilvy Renault. Financing for the transaction was provided by National Bank Financial and The Toronto-Dominion Bank.
