Blackstone in $1bn insurance deal

Investment firm Lindsay Goldberg has agreed to sell US insurance broker Alliant to Blackstone, after having purchased the company from GTCR Golder Rauner two years ago. Sources say the deal is worth roughly $1.2 billion.

Alliant Insurance Services will once again have private equity owners, this time with The Blackstone Group reportedly paying more than $1 billion (€744 million) to add the insurance company to its portfolio. Just two years ago, investment firm Lindsay Goldberg purchased Alliant for an undisclosed amount from private equity firm GTCR Golder Rauner.

Financial terms were not disclosed for the latest Alliant deal, but several media reports citing sources familiar with the matter have said the transaction is valued at between $1.1 billion and $1.2 billion. Management and employees will also have a stake in the firm, as they did in previous transactions, the firms said in a statement.

“Alliant is an attractive platform due to its market leadership in its core segments, superior growth prospects, and world-class management,” Chinh Chu, Blackstone senior managing director, said in a statement.

The transaction is expected to close within 75 days. JP Morgan was Lindsay Goldberg’s financial advisor and is also arranging financing for the deal. Weil, Gotshal & Manges was the investment bank’s legal counsel, while Simpson Thacher & Bartlett provided Blackstone’s legal counsel.

Blackstone’s financial services portfolio currently contains diverse insurance and re-insurance companies such as LaSalle, Axis, Aspen, HealthMarkets and Ariel.

The insurance sector has seen a good deal of recent activity: Apax and Morgan Stanley agreed to pay roughly $1.7 billion for US insurance firm Hub International, Fortress Investment Group purchased UK-listed reinsurer Alea for £162 million, and Hutton Collins bought a 22 percent stake UK insurance broker Windsor.