Fortegra Financial Corporation Reaches a Definitive Agreement to Sell Bliss & Glennon and eReinsure to AmWINS Group, Inc.
03 Dezember 2013 - 2:30PM
Marketwired
Fortegra Financial Corporation Reaches a Definitive Agreement to
Sell Bliss & Glennon and eReinsure to AmWINS Group, Inc.
JACKSONVILLE, FL--(Marketwired - Dec 3, 2013) - Fortegra
Financial Corporation (NYSE: FRF), announced today that it has
reached a definitive agreement to sell Bliss & Glennon, an
excess and surplus lines wholesale insurance broker and managing
general agency, and eReinsure, an online platform for managing the
placement of facultative reinsurance to AmWINS Group, Inc. The
acquisition is expected to close within 30 days, following standard
regulatory approval.
Richard S. Kahlbaugh, Chairman, President and Chief Executive
Officer of Fortegra commented, "It is with great pleasure that I
announce today the sale of our two insurance brokerage businesses,
Bliss & Glennon and eReinsure. Together with the management of
Bliss & Glennon and eReinsure, we were able to increase the
value and market position of the businesses. While the decision to
divest was difficult, we believe this divestiture to be in the best
interest of our shareholders and all employees."
"Following the sale of our brokerage operations, we will be able
to focus our full attention on our payment protection, warranty and
service contract products. These products generate our highest
margins and provide us a significant opportunity for future
growth."
"We continue to have meaningful sales success in our credit
insurance and other specialty insurance lines, including mobile
device warranty and service contracts. We also fully expect our
resources to be allocated to our auto products, including auto
service contracts and roadside assistance."
"We intend to use the proceeds of the transaction to deleverage
our balance sheet and provide more flexibility as the business
grows."
Sandler O'Neill + Partners, L.P. is serving as exclusive
financial advisor to Fortegra Financial Corporation and rendered a
fairness opinion in connection with this transaction.
About Fortegra
Financial
Fortegra Financial Corporation is a diversified insurance
services company offering a wide array of revenue enhancement
products, including service contracts, device and warranty
services, and distribution and administration services, to
insurance companies, insurance brokers and agents and other
financial services companies, primarily in the United States.
Fortegra Financial's brands include Fortegra™, Life of the South®,
4Warranty, ProtectCELL™, Continental Car Club™, Auto Knight Motor
Club™, United Motor Club™, Consecta™, Pacific Benefits Group™,
Bliss & Glennon™, eReinsure™, South Bay Acceptance Corporation
and Universal Equipment Recovery Group. Additional information
about Fortegra can be found at www.fortegrafinancial.com.
Forward-Looking
Statements
This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Act of
1995. Such statements are subject to risks and
uncertainties. All statements other than statements of
historical fact included in this press release are forward-looking
statements. Forward-looking statements give our current
expectations and projections relating to our financial condition,
results of operations, plans, objectives, future performance and
business. You can identify forward-looking statements by the
fact that they do not relate strictly to historical or current
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"anticipate," "estimate," "expect," "project,'' "plan," "intend,"
"believe," "may," "should," "can have," "likely" and other words
and terms of similar meaning in connection with any discussion of
the timing or nature of future operating or financial performance
or other events.
The forward-looking statements contained in this press release
are based on assumptions that we have made in light of our industry
experience and our perceptions of historical trends, current
conditions, expected future developments and other factors we
believe are appropriate under the circumstances. As you read
this press release, you should understand that these statements are
not guarantees of performance or results. They involve risks,
uncertainties (some of which are beyond our control) and
assumptions. Although we believe that these forward-looking
statements are based on reasonable assumptions, you should be aware
that many factors could affect our actual financial results and
cause them to differ materially from those anticipated in the
forward-looking statements. We believe these factors include,
but are not limited to, those described under Item 1A. - "Risk
Factors" in Fortegra's most current Annual Report on Form 10-K and
most current Quarterly Report on Form 10-Q. Should one or more of
these risks or uncertainties materialize, or should any of these
assumptions prove incorrect, our actual results may vary in
material respects from those projected in these forward-looking
statements.
Any forward-looking statement made by us in this press release
speaks only as of the date on which we make it. Factors or
events that could cause our actual results to differ may emerge
from time to time, and it is not possible for us to predict all of
them. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
Further information concerning Fortegra Financial and its
business, including factors that potentially could materially
affect Fortegra's financial results, is contained in Fortegra's
filings with the SEC, which are available free of charge at the
SEC's website at http://www.sec.gov and from Fortegra Financial's
website in the "Investor Relations" section under "SEC Filings" at
http://www.fortegrafinancial.com.
Contact: Stephanie Gannon 904.352.2759
Email Contact
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