The Markel Corp. headquarters at Innsbrook. (Michael Schwartz)
For its latest acquisition, a local Fortune 500 looked back to the Lone Star State, securing its second nine-figure deal there in six months.
Insurance giant Markel Corp. announced Wednesday it is acquiring Texas-based State National Cos. in a deal valued at $919 million.
Once completed as expected in the fourth quarter, State National will operate as a separate business unit, led by its existing management team and chairman and CEO Terry Ledbetter. It will continue to be based in Bedford, Texas.
Markel will acquire all of State National’s outstanding shares of common stock for $21 per share in cash – a 7 percent premium to State National’s closing price July 25. Markel’s stock closed Wednesday at $1,023 per share, after eclipsing the $1,000-per-share threshold last week.
The announcement describes State National as a collateral protection provider with $1.3 billion in gross written premiums last year and more than 60 programs.
In the announcement, Markel co-CEO Richard Whitt said the addition of State National will help Markel leverage its Insurtech and digital distribution initiatives and diversify its underwriting and fee-based portfolios.
Markel was advised in the transaction by Chicago-based law firm Sidley Austin LLP. State National’s financial advisor was New York firm Evercore, and its legal counsel was New York-based Skadden, Arps, Slate, Meagher & Flom LLP.
The deal has been approved unanimously by both companies’ boards of directors and requires approval of a majority of State National shareholders, among other closing conditions.
The deal is the second nine-figure acquisition for Markel this year. In February, the company, headquartered in Innsbrook, struck a deal to acquire SureTec Financial Corp., a surety bond firm also based in Texas. That acquisition, valued at $250 million, was completed in May.
In 2015, subsidiary Markel Ventures acquired local IT firm CapTech Ventures, as well as Bermuda-based CATCo Investment Management. That deal was Markel Corp.’s second in Bermuda, where it acquired Alterra Capital Holdings in 2012 in a $3.13 billion deal.
Markel Corp. primarily markets and underwrites specialty insurance products, and Markel Ventures generally targets controlling investments in businesses that operate outside the specialty insurance marketplace.
The Markel Corp. headquarters at Innsbrook. (Michael Schwartz)
For its latest acquisition, a local Fortune 500 looked back to the Lone Star State, securing its second nine-figure deal there in six months.
Insurance giant Markel Corp. announced Wednesday it is acquiring Texas-based State National Cos. in a deal valued at $919 million.
Once completed as expected in the fourth quarter, State National will operate as a separate business unit, led by its existing management team and chairman and CEO Terry Ledbetter. It will continue to be based in Bedford, Texas.
Markel will acquire all of State National’s outstanding shares of common stock for $21 per share in cash – a 7 percent premium to State National’s closing price July 25. Markel’s stock closed Wednesday at $1,023 per share, after eclipsing the $1,000-per-share threshold last week.
The announcement describes State National as a collateral protection provider with $1.3 billion in gross written premiums last year and more than 60 programs.
In the announcement, Markel co-CEO Richard Whitt said the addition of State National will help Markel leverage its Insurtech and digital distribution initiatives and diversify its underwriting and fee-based portfolios.
Markel was advised in the transaction by Chicago-based law firm Sidley Austin LLP. State National’s financial advisor was New York firm Evercore, and its legal counsel was New York-based Skadden, Arps, Slate, Meagher & Flom LLP.
The deal has been approved unanimously by both companies’ boards of directors and requires approval of a majority of State National shareholders, among other closing conditions.
The deal is the second nine-figure acquisition for Markel this year. In February, the company, headquartered in Innsbrook, struck a deal to acquire SureTec Financial Corp., a surety bond firm also based in Texas. That acquisition, valued at $250 million, was completed in May.
In 2015, subsidiary Markel Ventures acquired local IT firm CapTech Ventures, as well as Bermuda-based CATCo Investment Management. That deal was Markel Corp.’s second in Bermuda, where it acquired Alterra Capital Holdings in 2012 in a $3.13 billion deal.
Markel Corp. primarily markets and underwrites specialty insurance products, and Markel Ventures generally targets controlling investments in businesses that operate outside the specialty insurance marketplace.