Pete McPartland Stevens Point-based Sentry Insurance announced that it will acquire The General from Madison-based American Family Insurance in a $1.7 billion deal. Sentry will purchase The General for about $1.1 billion in cash consideration. Including the value of assumed liabilities and required capital, the total transaction value will be $1.7
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Pete McPartland[/caption]
Stevens Point-based Sentry Insurance announced that it will acquire The General from Madison-based American Family Insurance in a $1.7 billion deal.
Sentry will purchase The General for about $1.1 billion in cash consideration. Including the value of assumed liabilities and required capital, the total transaction value will be $1.7 billion.
The transaction is expected to close by the end of the year.
Nashville-based The General Automobile Insurance Services Inc. was founded in 1963. It specializes in nonstandard auto insurance, providing insurance to drivers who are considered higher risk, with more expensive car insurance premiums. The General was acquired by American Family in 2012.
Sentry Insurance also provides coverage for nonstandard auto, motorcycle and off-road vehicles through its Dairyland brand.
"This acquisition is the largest in our 120-year history. It brings together two of the strongest brands in the nonstandard auto industry," said Pete McPartland, chairman and CEO of Sentry. "Together, Dairyland and The General will be better able to meet the specialized needs of even more drivers across the country. It's an exciting step forward for both companies, and I'm proud of the work our team has done to make this possible."
The General and Dairyland brands will continue to operate independently as Sentry and The General work through the integration process.
Approximately 1,300 employees from The General will join Sentry's workforce of 5,000 on Jan. 1. The General employees will continue to be headquartered in Nashville.
"As part of our enterprise, The General has grown its revenue more than fivefold, driven consistently profitable business, entered into new states while remaining dedicated and passionate about the customers and the market it serves," said Bill Westrate, Chair and CEO of American Family Insurance. "We've found a strategic and cultural fit in Sentry, where the growth and momentum that The General has will continue. We're confident that Sentry's expertise, strong reputation in this market and employment culture will not only continue to serve The General's customers well but will also ease the transition for The General's employees."
Sentry was advised on legal matters by Sidley Austin LLP, with J.P. Morgan acting as financial advisor. American Family was advised on legal matters by Foley and Lardner LLP with Goldman Sachs & Co. LLC acting as financial advisor.