Enstar, a Bermuda-based insurance group, and American private equity firm Madison Dearborn Partners (MDP) have entered into agreements with Evergreen Parent to participate in portion of equity financing for take-private transaction of AmTrust Financial Services.
Evergreen Parent is an entity formed by private equity funds managed by Stone Point Capital and the Karfunkel-Zyskind Family.
As per the agreement, each of MDP and Enstar will participate in a portion of the previously disclosed take-private purchase of approximately 45% of the issued and outstanding shares of common stock of AmTrust Financial Services.
They will collectively fund $350m portion of the AmTrust Financial Services take-private transaction. In exchange, they will receive equity interests in Evergreen.
Excluding AmTrust’s outstanding preferred stock, the proposed transaction values the fully diluted equity of AmTrust at approximately $2.95bn.
Vahe Dombalagian, a managing director on the MDP Financial and transaction services team, said: “We are excited to join with Enstar, the Karfunkel-Zyskind Family, and Stone Point and have the opportunity to invest in AmTrust itself.
“Following our acquisition earlier this year of a number of AmTrust’s US fee businesses, which is now called The Amynta Group, we have come to know AmTrust and the management team well.”
The take-private transaction, which was permitted by AmTrust’s stockholders on June 21, is scheduled to be completed in the second half of 2018.