With deal news from Fiserv, Signicast
Fiserv completes sale of majority interest in its insurance business
Brookfield-based Fiserv Inc. has completed the sale of a 51-percent interest in its insurance business, Fiserv Insurance Solutions, to Trident IV, a private equity fund managed by Greenwich, Conn.-based Stone Point Capital LLC. Fiserv received approximately $510 million in net after-tax proceeds and retains a 49 percent equity interest in the business. Hundreds of life, property and casualty, health, and reinsurance carriers, managing general agents, and administrators receive insurance technology, professional services, and outsourcing solutions from Fiserv Insurance Solutions.
Private investment firm acquires Signicast
Signicast Corp., a Hartford-based investment castings manufacturer, has been acquired by The Pritzker Group, a Chicago and Los Angeles-based private investment firm that represents the interests of the Pritzker family. Signicast has more than 650 employees. Its Hartford facility is approximately 500,000 square feet. It also operates a facility in Milwaukee, where the company was founded. The company had about $130 million in revenues for 2007 and forecasts more than $140 million in revenues this year.
Terms of the transaction were not disclosed. The Pritzker Group typically partners with management teams of the companies it is purchasing, and Signicast’s management team was part of this acquisition, said Richard Griffin, group vice president of The Pritzker Group.
While The Pritzker Group owns and has operated industrial and manufacturing companies, it is not planning major changes at Signicast. "We look forward to working with their management and their top customers," Griffin said. "We want them to keep doing what they’re doing. They have a formula for success, in terms of sales, service and fulfillment times." Walter "Terry" Lutz, president of Signicast, will continue to lead the company, along with Robert Schuemann, executive vice president. Before the sale, Lutz held a majority of the company.
There were many potential buyers for Signicast, including private equity groups and strategic buyers. The company was most attracted to a family private investment firm because, Lutz said, because it does not plan large changes. "They (private investment firms) were the only kind of people we talked to," Lutz said. "They were the only ones that fit our objective. We were looking for someone who could accept Signicast for what it was and continue it for the future."