777 Partners-backed Brickell to acquire R&Q for £482m
Brickell PC Insurance Holdings has agreed to acquire the entire issued ordinary share capital of Randall & Quilter (R&Q) for £482 million ($632.4 million), as well as provide $100 million of new equity funding to the business.
Brickell PC2 Insurance Holdings will be incorporated in Bermuda this year for purposes of merging with R&Q. It will merge with and into R&Q with the result that R&Q will be the surviving company of the merger. As a result of the merger, R&Q will become an indirect wholly-owned subsidiary of Brickell.
R&Q is a non-life global specialty insurer focusing on the program management and legacy insurance businesses. It is incorporated in Bermuda, with operations in the US, UK, Europe and Bermuda and has 308 employees across eight offices.
Brickell’s principal economic investor is 777 Partners, a global investment firm headquartered in Miami, Florida.
Steven Pasko, chairman of Brickell, said: “We have enjoyed a strong relationship with R&Q as a shareholder since 2019 and further supported the business with an infusion of capital in 2020. We are excited about the prospect of integrating R&Q into our robust insurance ecosystem and expanding our business into the legacy space, by combining R&Q’s deep experience in managing complex run-off claims with 777’s unique asset management capabilities.”
William Spiegel, executive chairman of R&Q, said: “The value Brickell sees in R&Q is testament to the clear strategic vision we have outlined, the quality of our Legacy Insurance and Program Management businesses and the skills and expertise of our people. Brickell is a long-term strategic partner that has a deep understanding of our business and our markets, and has bought into our five-year plan to transform R&Q into a fee-based, capital lighter business.”
The acquisition and new equity funding are conditional on approval by R&Q shareholders, receipt of regulatory clearances and the satisfaction (or waiver) of the other conditions.
The acquisition is expected to become effective around April 2023.
Barclays Bank and Numis Securities are acting as financial advisors to R&Q on the Acquisition.
