AmTrust gets regulatory approval for $2.7bn go-private deal

AmTrust Financial Services has obtained all regulatory approvals to complete the $2.7 billion merger transaction with Evergreen Parent on Nov. 29 which will see the firm go private.

As part of the plan, Evergreen Parent, an entity formed by private equity funds managed by Stone Point Capital, together with Barry Zyskind, chairman and CEO of AmTrust, George Karfunkel and Leah Karfunkel, acquiring the approximately 45 percent of the company's issued and outstanding common shares that the Karfunkel-Zyskind Family and certain of its affiliates and related parties do not presently own or control.

The transaction had been approved by AmTrust common stockholders at a special meeting of stockholders held in June 2018 after the company improved the offer price per share of the merger agreement with Evergreen Parent.

At closing, under the terms of the amended merger agreement, AmTrust common stockholders will receive $14.75 in cash for each share of AmTrust common stock they own. Following the close of the transaction, AmTrust common stock will cease trading and will be delisted from the NASDAQ Stock Market.

AmTrust 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.

AmTrust reported a net loss of $348.9 million for 2017 after a net profit of $430.4 million in 2016. CEO Barry Zyskind had previously argued that as a private enterprise AmTrust will be able to focus on long-term decisions, without the emphasis on short-term results. AmTrust wants to address financial controls as well as pricing and reserve adequacy issues.

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