Bermuda legacy specialist Enstar has gone outside the world of insurance for the first time after buying Dana Companies, a subsidiary of an auto parts manufacturer.
Enstar paid $91.5 million for Dana Companies from Dana Incorporated. Enstar financed the transaction through a drawing under its revolving credit facility.
Dana supplies highly engineered drivetrain, sealing, and thermal-management technologies for vehicles.
The assets held by the company include, among others, insurance rights related to coverage against these liabilities and marketable securities.
Under the terms of the deal Enstar will take on the liabilities associated with personal injury asbestos claims and environmental claims associated with legacy manufacturing operations as well as assets held to fund obligations related to these liabilities.
Dominic Silvester, Enstar’s chief executive, said: “The Dana Companies acquisition complements our core business of managing legacy liabilities and our specific expertise in asbestos, and we are pleased to have worked with Dana to provide an effective resolution to the asbestos liabilities arising from historic operations.
“This is the first time Enstar has acquired a company outside of the insurance industry, demonstrating our ability to deliver legacy and capital release solutions to this broader market sector as we continue to grow our business.”
Enstar, Dana Companies, Bermuda, Acquisition