AmTrust completes go-private deal
AmTrust Financial Services has completed the merger transaction in which Evergreen Parent acquired the approximately 45 percent of the company’s issued and outstanding common shares that the Karfunkel-Zyskind Family and certain of its affiliates and related parties did not already own or control.
Evergreen Parent is an entity formed by private equity funds managed by Stone Point Capital, together with Barry Zyskind, chairman and CEO of AmTrust, George Karfunkel and Leah Karfunkel.
The transaction values the fully diluted equity of AmTrust at approximately $2.95 billion, excluding the company's outstanding preferred stock.
Trading in AmTrust’s common stock on the Nasdaq has been suspended prior to the open of markets on Nov. 29. The transaction constitutes a “make-whole fundamental change” under the indentures relating to AmTrust’s outstanding convertible notes, the company noted.
“We are excited to enter this new chapter for AmTrust, and are fully focused on deepening the meaningful relationships we have with our agents, brokers, and customers,” said Zyskind, “We are committed to continuing to offer consistent and outstanding service in our markets. As we celebrate the 20th year since our founding, we are positioning AmTrust to remain a financially strong, stable insurance products and risk services partner.”
Headquartered in New York, AmTrust offers specialty property and casualty insurance products, including workers' compensation, commercial automobile, general liability and extended service and warranty coverage.
AmTrust reported a net loss of $348.9 million for 2017 after a net profit of $430.4 million in 2016. Zyskind had previously argued that as a private enterprise AmTrust will be able to focus on long-term decisions, without the emphasis on short-term results. AmTrust wants to address financial controls as well as pricing and reserve adequacy issues.
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