Investment firm Sixth Street will acquire Enstar Group Ltd., the Bermuda-based legacy acquisition specialist, for $5.1 billion, according to Enstar in an announcement.
Liberty Strategic Capital (a private equity company led by former Treasury Secretary Steven Mnuchin), J.C. Flowers and other institutional investors are also participating in the deal, Enstar said.
Enstar shareholders will receive a total of $338.00 per share in cash, representing a total equity value of $5.1 billion.
The transaction has been unanimously approved and recommended to Enstar’s shareholders by its Board of Directors, is expected to close in mid-2025, subject to approval by shareholders, regulators, and other customary closing conditions.
Following the close of the transaction, Enstar’s common stock will no longer be publicly listed and it will become a privately held company, which will continue to operate under the Enstar name and maintain its current business strategy.
“Over the past 30 years, Enstar has built a strong position in the legacy market founded on our exceptional scale and track record, pricing and claims expertise, and entrepreneurial culture,” said Enstar’s Chief Executive Officer Dominic Silvester, in a statement. “This transaction provides a full liquidity event for shareholders and is a testament to the strength of our team. We believe this is the best next step for our shareholders and we look forward to this exciting new chapter.”
“Enstar has a proven track record of delivering innovative legacy P&C solutions and capitalizing on attractive opportunities in the reinsurance market, while maintaining a conservative balance sheet and strong risk management culture,” said Michael Muscolino, co-founder and partner at Sixth Street. “As an existing investor in Enstar, we have a deep respect for the business Enstar’s management team has built and look forward to continue supporting the company’s current strategy.”
Goldman Sachs & Co. LLC is acting as financial adviser to Enstar and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Hogan Lovells US LLP are acting as legal advisers. Ardea Partners LP, Barclays PLC and J.P. Morgan Securities LLC are acting as financial advisers to Sixth Street and Simpson Thacher & Bartlett LLP, Debevoise & Plimpton LLP and Cleary Gottlieb Steen & Hamilton LLP are acting as legal advisers.
Enstar is a NASDAQ-listed leading global insurance group that offers capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international locations. As a legacy acquisition specialist, Enstar has acquired 117 companies and portfolios since its formation in 2001.
Founded in 2009, Sixth Street is a San Francisco-based global investment firm with over $75 billion in assets under management and committed capital.
Source: Enstar Group
Topics Mergers & Acquisitions
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