NEW YORK, Feb. 28, 2018 (GLOBE NEWSWIRE) -- AmTrust Financial Services, Inc. (Nasdaq:AFSI) (the “Company” or “AmTrust”) today announced it closed the transfer of a 51% equity interest in certain of its U.S.-based fee businesses to Madison Dearborn Partners (“MDP”), a leading private equity investment firm. This transaction had previously been announced on November 6, 2017.
“This transaction close marks a significant milestone in our efforts to unlock value and build a stronger capital base for AmTrust, while positioning both AmTrust and the U.S. fee companies for continued, profitable growth,” said Barry Zyskind, Chairman and CEO of AmTrust. “We thank all of the AmTrust and U.S. fee business employees for their hard work in closing this transaction and look forward to participating in the continued success of the new company as a significant shareholder.”
The divested portion of the U.S. fee businesses has become a newly formed company under the brand name of The Amynta Group (“Amynta”). Amynta has operations in warranty and services contracts for the automotive, consumer products and specialty equipment industries, among others, and administration of niche workers' compensation and contractor liability coverage in the United States on behalf of AmTrust and other carriers. The new company has more than 1,500 employees and is headquartered in New York. Stuart Hollander, who most recently served as AmTrust’s President, Specialty Risk, North America, will serve as Amynta’s CEO.
BofA Merrill Lynch served as financial advisor to AmTrust in connection with the transaction, and Debevoise & Plimpton LLP was legal counsel. Kirkland & Ellis LLP acted as legal advisor to MDP.
About AmTrust Financial Services, Inc.
AmTrust Financial Services, Inc., a multinational insurance holding company headquartered in New York, offers specialty property and casualty insurance products, including workers' compensation, commercial automobile, general liability and extended service and warranty coverage through its primary insurance subsidiaries rated "A" (Excellent) by A.M. Best. AmTrust is included in the Fortune 500 list of largest companies. For more information about AmTrust visit www.amtrustfinancial.com.
About The Amynta Group
The Amynta Group is an industry leading group of managing general agents, third party administrators and warranty companies. This collection of professionals and firms provides warranty and services contracts for the automotive, consumer products and specialty equipment industries, among others, and administers niche workers' compensation and contractor liability coverage in the United States on behalf of AmTrust and other carriers. The Amynta name is derived from antiquity and means “protector,” which underscores the company’s focus and commitment to bringing industry leading products and services to its wide range of clients and customers. Amynta plans to invest in growing and maintaining its market leading position with a focus on ensuring a high performing work culture, product innovation and market expansion.
About Madison Dearborn Partners, LLC
Madison Dearborn Partners, LLC (MDP), based in Chicago, is a leading private equity investment firm in the United States. Since MDP’s formation in 1992, the firm has raised seven funds with aggregate capital of approximately $23 billion and has completed approximately 130 investments. MDP is currently investing out of its most recent fund, $4.4 billion MDCP Fund VII, in businesses across a broad spectrum of industries, including financial and transaction services; basic industries; business and government services; health care; and telecom, media and technology (TMT) services. For more information, please visit http://www.mdcp.com.
This news release contains certain forward-looking statements that are intended to be covered by the safe harbors created by the Private Securities Litigation Reform Act of 1995. When we use words such as “anticipate,” “intend,” “plan,” “estimate,” “expect,” or similar expressions, we do so to identify forward-looking statements. Actual results may differ materially from those projected. The projections and statements in this news release speak only as of the date of this release, and neither AmTrust nor MDP undertakes any obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Additional information about the general risk factors that could cause AmTrust’s actual results to differ materially from those projected is contained in our filings with the SEC, including our Annual Report on Form 10-K and our quarterly reports on Form 10-Q.
For more information, please contact:
AmTrust Financial Services
Chief Communications Officer & SVP Corporate Affairs
Director of Investor Relations
Global Director of Public Relations
Madison Dearborn Partners and The Amynta Group
Source: AmTrust Financial Services, Inc.