White Mountains Insurance to Sell Tranzact
June 09 2016 - 2:10PM
Dow Jones News
Clayton Dubilier & Rice LLC will acquire MG LLC, a provider
of sales and marketing services to insurance companies that does
business as Tranzact, from White Mountains Insurance Group Ltd.
Fort Lee, N.J.-based Tranzact consists of Cignium, which
provides software and services for insurance marketing sales, and
TZ Insurance Solutions LLC, which executes marketing, lead
generation, sales and case management to sell insurance policies.
Among Tranzact's clients are Aetna Inc., Humana Inc., MassMutual
Financial Group, MetLife Inc. and Wal-Mart Stores Inc.
SunTrust Robinson Humphrey Inc., SunTrust Banks Inc., ING
Capital, Citizens Bank NA and Natixis committed debt financing for
the transaction, according to a news release. Terms of the deal
weren't disclosed.
The transaction will increase White Mountains' book value by $85
million, or $17 per share, according to a filing with the
Securities and Exchange Commission. White Mountains shares were at
$816.11 in early afternoon trading.
The Wall Street Journal reported in April that White Mountains
had retained Evercore to explore a sale of Tranzact. At the time,
people said the company had earnings before interest, taxes,
depreciation and amortization north of $50 million.
White Mountains acquired a 63% stake in Tranzact at a purchase
price of $178 million in 2014. The deal had an enterprise value of
$280 million. The company had previously been backed by
private-equity firms Veronis Suhler Stevenson and Ares Management
LP.
Law firm Debevoise & Plimpton LLP advised Clayton Dubilier
& Rice, according to the release. Evercore and Petsy Prunier
LLC acted as financial advisers to Tranzact. Law firm Cravath
Swaine & Moore LLP acted as legal adviser to selling equity
holders and Tranzact. Lowenstein Sandler LLP advised Tranzact
management.
New York firm Clayton Dubilier & Rice invests in consumer,
health-care, industrial, business services and energy services
companies. The firm has managed $21 billion in 66 businesses since
it was founded in 1978.
Write to Laura Cooper at laura.cooper@wsj.com
(END) Dow Jones Newswires
June 09, 2016 14:55 ET (18:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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