AmTrust To Acquire Republic Cos. For $233 Mln

(RTTNews) - AmTrust Financial Services Inc (AFSI) on Sunday said it has agreed to acquire Republic Companies Inc and its affiliates from Delek Group Ltd and Republic Insurance Holdings LLC for about $233 million, subject to purchase price adjustments.

The purchase price will be a combination of $113 million in upfront cash, a $105 million note issued by AmTrust to Delek Group Ltd bearing annual interest of 5.75% with a four year maturity and cash payments to be made over five years.

Pending regulatory approval, the parties anticipate closing will occur during the first half of 2016.

Texas based Republic has been providing property/casualty insurance for over 100 years. In 2014, Republic reported total direct premiums of about $711 million. The majority of the business is written in the Southwestern states. In addition, Republic generates fee revenue by providing insurance services to third parties.