Enstar closes $252m Seabright deal
A subsidiary of Bermuda-based Enstar Group Ltd has completed its acquisition of US insurer Seabright, the two companies announced yesterday.
Enstar, which acquires and manages re/insurance companies and portfolios in run-off, paid approximately $252 million for Seabright, whose shareholders received $11.11 per share. The announcement of a merger deal was first announced in August last year.
The transaction was financed in part by a bank loan facility provided by National Australia Bank Ltd and Barclays Bank PLC.
Seattle-based SeaBright has been offering workers’ compensation insurance for 25 years. It was once the Eagle Pacific Insurance division of Services Group of America.
SeaBright and its subsidiaries reported total assets of approximately $1.1 billion and total liabilities of approximately $745 million in its quarterly report for the third quarter of 2012.
Enstar will operate SeaBright’s insurance operations in run-off.
Aside from its core workers’ compensation business, Seabright also owns Paladin Managed Care Services, Inc, a company that provides integrated managed medical care services, and PointSure Insurance Services, Inc, a wholesale broker affiliate.
Effective with the opening of the market today, SeaBright will cease to be a publicly traded company and its common stock will discontinue trading on the NYSE.