The companies jointly operate across 21 countries, and Assurant President and Chief Executive Alan Colberg said the deal solidifies its “global position” as a provider of vehicle protection services.
As a combined entity, Assurant has the resources to enhance its presence in the Asia-Pacific market and obtains access to new client partnerships and distribution channels, including dealer networks and national accounts. By the end of 2019, Assurant expects to generate $60 million of pre-tax operating synergies by optimizing global operations.
The total enterprise value represents about 10.4 million Assurant shares, or $993 million based on the acquisition agreement closing price, and $1.5 billion in cash, after repayment of TWG’s $596 million of existing debt.
Assurant originally announced the acquisition in October 2017. As part of the transaction agreement, Assurant Inc. will become a wholly owned subsidiary of TWG Holdings Ltd., whose name will change to Assurant Ltd.Like This Post