M&A Deal Summary

Calera Capital and TPG Acquire Direct General

On March 30, 2007, private equity firms Calera Capital and TPG acquired insurance company Direct General for 628M USD

Acquisition Highlights
  • This is Calera Capital’s 2nd and TPG’s 4th transaction in the Insurance sector.
  • This is Calera Capital’s 2nd and TPG’s 76th largest (disclosed) transaction.
  • This is Calera Capital’s 14th and TPG’s 67th transaction in the United States.
  • This is Calera Capital’s 1st and TPG’s 2nd transaction in Tennessee.
Investment Fate
  • Direct General was sold to a strategic buyer in 2016 for 165M USD.

M&A Deal Summary

Date 2007-03-30
Target Direct General
Sector Insurance
Buyer(s) Calera Capital
TPG
Deal Type Going Private
Deal Value 628M USD
Advisor(s) SunTrust Robinson Humphrey (Financial)

Target

Direct General

Nashville, Tennessee, United States
Direct General Corp. is a financial services company providing non-standard personal automobile insurance, term life insurance, premium finance and other consumer finance products and services through retail offices.

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Buyer(S) 2

Buyer

Calera Capital

San Francisco, California, United States

Investor Investor Investor Investor


Category Private Equity Firm
Founded 1991
PE ASSETS 3.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Calera Capital Partners LP is a private equity firm that targets investments in mid-sized North American businesses valued up to $750 million. Calera Capital looks to invest at least $35 million of equity capital per transaction. Target industries include manufacturing, software, healthcare, consumer products and services. Prospective transaction situations include leveraged recapitalizations of privately held companies, restructurings, growth financings/acquisitions, corporate spin-offs, and take-private situations. Calera seeks businesses with leading market positions, attractive margins, and strong organic growth. Calera Capital was formerly known as Fremont Partners, a unit of the Fremont Group. Calera Capital was formed in 1991 and has offices in San Francisco, California and Boston, Massachusetts.


DEAL STATS #
Overall 15 of 35
Sector (Insurance) 2 of 3
Type (Going Private) 1 of 1
State (Tennessee) 1 of 1
Country (United States) 14 of 32
Year (2007) 2 of 4
Size (of disclosed) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-02-08 Software Architects

Westchester, Illinois, United States

Software Architects is a provider of information technology consulting services. The company has vast experience in delivering customized solutions designed for Fortune 500 and middle-market companies.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-04-02 Resun Leasing

Dulles, Virginia, United States

Resun Leasing is a leading lessor of modular buildings. Resun leases, sells, delivers, installs, and services modular mobile offices and factory-built buildings for public and private schools, churches, day care centers, hospitals, county, state and federal government agencies, and corporations. Resun was founded in 1986 and has enjoyed considerable growth in assets, revenues, and profits. Resun operates through 37 branches primarily located throughout the East Coast, South, and Sunbelt states. Resun is an entrepreneurial, growth-focused company led by a management team that is highly experienced in the modular building industry. Resun's high customer service levels and flexible product offering have resulted in strong customer loyalty in a diverse range of industries.Calera Capital acquired a controlling interest in Resun in September 2000. Resun's management team retains a substantial equity interest in the business.

Sell -
Buyer

TPG

Fort Worth, Texas, United States


Category Private Equity Firm
Founded 1992
PE ASSETS 137.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

TPG Capital is a global, mega-sized private investment firm that manages a family of funds focused on private equity, real estate, venture capital, public equity and debt investing. TPG invests in opportunities across a broad range of industries and geographies. TPG generally seeks to invest in established businesses that can benefit from the Firm's operational experience and connections. Industries of interest include consumer, retail, healthcare, industrials, digital media, natural resources, energy, real estate, technology, and software. TPG was formerly known as Texas Pacific Group and was originally established in 1992 by David Bonderman, James Coulter and William Price. The Firm is based in Forth Worth, Texas with additional offices in Europe, Asia, and Australia.


DEAL STATS #
Overall 95 of 423
Sector (Insurance) 4 of 5
Type (Going Private) 13 of 37
State (Tennessee) 2 of 5
Country (United States) 67 of 277
Year (2007) 7 of 20
Size (of disclosed) 76 of 106
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-03-27 Univision

New York, New York, United States

Univision entertains, informs, and empowers U.S. Hispanics with news, sports, and entertainment content across broadcast and cable television, audio, and digital platforms. The company’s top-rated media portfolio includes the Univision and UniMás broadcast networks, as well as cable networks Galavisión and TUDN, the No. 1 Spanish-language sports network in the country. Locally, Univision owns or operates 65 television stations in major U.S. Hispanic markets and Puerto Rico. Additionally, Uforia, the Home of Latin Music, encompasses 58 owned or operated radio stations, plus 89 affiliates, a live event series, and a robust digital audio footprint. Univision was formed in 1992 and is based in New York, New York.

Buy $13.7B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-04-01 Bank Thai Public Company Limited

Thailand

Bank Thai Public Company Ltd. provides various financial and banking services for corporate and individual customers in Thailand.

Buy -