Altaris Enters Into Agreement To Acquire Trean Insurance Group
New York, NY – Altaris, LLC (collectively with its affiliates, “Altaris”) announced today that it has entered into a definitive agreement to acquire Trean Insurance Group, Inc. (Nasdaq: TIG) (“Trean” or the “Company”) in a take-private transaction. Following the completion of the acquisition, Trean will become a privately held company and its common stock will no longer be traded on the NASDAQ. The transaction, which implies total equity value for the Company of approximately $316 million, is expected to close during the first half of 2023, subject to certain closing conditions.
Altaris currently owns approximately 47% of Trean’s outstanding common stock. Under the terms of the agreement, Altaris will acquire all of the remaining common stock it does not own for $6.15 in cash per share. A Special Committee comprised solely of independent and disinterested directors evaluated Altaris’ proposal and alternatives thereto. The Special Committee unanimously recommended to Trean’s Board of Directors that it approve the merger agreement and recommend adoption of the merger agreement to stockholders.
Trean is a leading provider of products and services to the specialty insurance market. The Company underwrites workers’ compensation and specialty casualty insurance products through its producers, program partners and its owned managing general agencies. Trean also provides its program partners with a variety of services including issuing carrier services, claims administration and reinsurance brokerage. Trean is licensed to write business across 49 states and the District of Columbia.
Following the closing of the transaction, it is expected that Julie Baron will remain President and Chief Executive Officer of Trean and that Andrew O’Brien, the founder of Trean and Executive Chairman of the Board, will continue to serve on the Board. The Company is expected to maintain its headquarters in Wayzata, Minnesota.
Houlihan Lokey is acting as independent financial advisor to the Special Committee, and Morris, Nichols, Arsht & Tunnell LLP is acting as independent legal advisor to the Special Committee. Bass Berry & Sims PLC is serving as legal advisor to the Company. Kirkland & Ellis LLP is serving as legal advisor to Altaris.
Altaris is a healthcare investment firm with an exclusive focus on building companies that deliver value to the healthcare system through innovation and efficiency. Since inception in 2003, Altaris has invested in 49 healthcare companies which have generated significant value appreciation for investors. Altaris is headquartered in New York City and manages approximately $5 billion of equity capital.