For the second time in less than a month, Markel Corp.’s investment arm has acquired a majority interest in a local company.
The insurer announced late yesterday that its Markel Ventures subsidiary purchased of a large stake of Diamond Healthcare Corp., which is headquartered in the Federal Reserve building downtown.
Diamond, a privately held company, manages behavioral health programs for hospitals and other clients across the country.
According to Markel’s release, all members of the Diamond management team will remain in place, as is typical of Markel Venture acquisitions. Its deals are usually structured to provide its investment companies with fresh capital for growth, while allowing the experienced management team to continue to run the show.
Financial terms of the transaction were not disclosed.
Diamond said in an announcement posted on its website that, although Markel is now its majority shareholder, “all investors who began the company in 1985 will continue to be shareholders in the company.”
The purchase comes just a few weeks after Markel bought RetailData LLC, a local retail intelligence firm. Read more about that here.
Its other recent purchases include a pickle packing company, a dredging company and a local private equity fund that had taken control of the distressed real estate project West Broad Village. You can read a BizSense story about that deal here.
Markel Ventures said it expects its 2011 annualized revenue to exceed $250 million.
For the second time in less than a month, Markel Corp.’s investment arm has acquired a majority interest in a local company.
The insurer announced late yesterday that its Markel Ventures subsidiary purchased of a large stake of Diamond Healthcare Corp., which is headquartered in the Federal Reserve building downtown.
Diamond, a privately held company, manages behavioral health programs for hospitals and other clients across the country.
According to Markel’s release, all members of the Diamond management team will remain in place, as is typical of Markel Venture acquisitions. Its deals are usually structured to provide its investment companies with fresh capital for growth, while allowing the experienced management team to continue to run the show.
Financial terms of the transaction were not disclosed.
Diamond said in an announcement posted on its website that, although Markel is now its majority shareholder, “all investors who began the company in 1985 will continue to be shareholders in the company.”
The purchase comes just a few weeks after Markel bought RetailData LLC, a local retail intelligence firm. Read more about that here.
Its other recent purchases include a pickle packing company, a dredging company and a local private equity fund that had taken control of the distressed real estate project West Broad Village. You can read a BizSense story about that deal here.
Markel Ventures said it expects its 2011 annualized revenue to exceed $250 million.