Add-on Acquisition • Insurance

Global Atlantic Financial Group Acquires Ariel Re

On April 5, 2012, Global Atlantic Financial Group acquired insurance company Ariel Re from The Blackstone Group, TPG, Oak Hill Capital, Olympus Partners and Thomas H. Lee Partners

Acquisition Context
  • This is Global Atlantic Financial Group’s 1st transaction in the Insurance sector.
  • This is Global Atlantic Financial Group’s 1st transaction in Bermuda.
Investment Fate
  • Ariel Re was sold to a strategic buyer in 2016 for 235M USD.
  • Ariel Re was divested to a consortium of buyers in 2020.

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M&A Deal Summary

Date April 5, 2012
Target Ariel Re
Sector Insurance
Buyer(s) Global Atlantic Financial Group
Sellers(s) The Blackstone Group
TPG
Oak Hill Capital
Olympus Partners
Thomas H. Lee Partners
Deal Type Add-on Acquisition
Advisor(s) Willkie Farr & Gallagher (Legal)

Target Company

Ariel Re

Hamilton, Bermuda
Ariel Re is a reinsurance company based in Bermuda that underwrites a global portfolio of insurance and reinsurance business through offices in London, Bermuda, Atlanta and Kansas City. Ariel Re was founded in 2005 and is based in Hamilton, Bermuda.
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Buyer Overview 1

Buyer

Global Atlantic Financial Group

New York, New York, United States

Category Company
Founded 2004
Sector Insurance
DESCRIPTION

Global Atlantic Financial Group is a multiline insurance and reinsurance company that serves more than two million policyholders through its retirement and life insurance products. Global Atlantic was formed in 2004 and is based in New York, New York.


Deal Context for Buyer #
Overall 1 of 5
Sector: Insurance 1 of 3
Type: Add-on Acquisition 1 of 3
Country: Bermuda 1 of 1
Year: 2012 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-05-02 Ariel Re

Hamilton, Bermuda

Ariel Re is a reinsurance company based in Bermuda that underwrites a global portfolio of insurance and reinsurance business through offices in London, Bermuda, Atlanta and Kansas City. Ariel Re was founded in 2005 and is based in Hamilton, Bermuda.

Sell -

Seller Profiles 5

SELLER

The Blackstone Group

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 394.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

The Blackstone Group is a global alternative investment management firm. The Firm's investment activities span real estate, secondary investments, hedge funds, credit, infrastructure, and private equity. Blackstone's private equity group targets opportunities globally including buyout acquisitions of established companies, development projects, growth equity financings, and industry consolidations. Sectors of interest include automotive, healthcare, chemicals, industrial, commercial property, lodging, communications, media/publishing, consumer & retail, packaging, consumer products, pharmaceuticals, energy, technology, entertainment, telecommunications, financial services, theme parks, food & beverage, and transportation. Blackstone's private equity real estate group looks for opportunities across North/South America, Asia, Australia/New Zealand, and Europe. The real estate group will consider both equity and debt investments. Areas of interest include healthcare, hotel, industrial, office, residential, and retail. The Blackstone Group was formed in 1987 and is based in New York, New York.


Deal Context for Seller #
Overall 64 of 195
Sector: Insurance 4 of 8
Type: Add-on Acquisition 26 of 75
Country: Bermuda 4 of 5
Year: 2012 2 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-02-08 Caesars Entertainment

Las Vegas, Nevada, United States

Caesars Entertainment is a diversified casino entertainment provider with casinos and resorts in the US, South America, Europe, and the Middle East. In addition to casinos, Caesars' facilities typically include hotel and convention space, restaurants, and non-gaming entertainment facilities. Caesars Entertainment Corp. was established in 1937 and is headquartered in Las Vegas, Nevada.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-05-22 G6 Hospitality

Carrollton, Texas, United States

G6 Hospitality owns, operates and franchises economy lodging locations under the Motel 6 brand and the Studio 6 Extended Stay brand. G6 Hospitality is based in Carrollton, Texas.

Buy $1.9B
SELLER

TPG

Fort Worth, Texas, United States

Investor Investor Investor Investor


Category Private Equity Firm
Founded 1992
PE ASSETS 296.0B 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 Context for Seller #
Overall 83 of 278
Sector: Insurance 3 of 5
Type: Add-on Acquisition 39 of 96
Country: Bermuda 2 of 2
Year: 2012 5 of 15
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-02-08 Caesars Entertainment

Las Vegas, Nevada, United States

Caesars Entertainment is a diversified casino entertainment provider with casinos and resorts in the US, South America, Europe, and the Middle East. In addition to casinos, Caesars' facilities typically include hotel and convention space, restaurants, and non-gaming entertainment facilities. Caesars Entertainment Corp. was established in 1937 and is headquartered in Las Vegas, Nevada.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-05-03 EverBank

Jacksonville, Florida, United States

EverBank provides full-service, nationwide banking and lending services to consumer, commercial and institutional clients through a variety of channels, including online, its Florida-based financial centers and at other business offices throughout the country. EverBank is based in Jacksonville, Florida.

Sell -
SELLER

Oak Hill Capital

Stamford, Connecticut, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1986
PE ASSETS 9.5B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Oak Hill Capital Partners was originally formed as the private equity investment vehicle for Robert Bass and in 1999, opened up to outside investors and raised its first private equity fund. Oak Hill looks to invest in middle-market companies and focuses its efforts within six industry groups. The six groups include basic industries; business and financial services; consumer, retail, and distribution; healthcare; media and telecom; and technology. Oak Hill targets businesses with defensible business models, strong market positions, and 'best-in-class' management. Oak Hill Capital was formed in 1986 and has offices in Stamford, Connecticut; Menlo Park, California; and New York City.


Deal Context for Seller #
Overall 23 of 56
Sector: Insurance 1 of 2
Type: Add-on Acquisition 10 of 23
Country: Bermuda 2 of 2
Year: 2012 2 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-01-05 Butler Schein Health Supply

Dublin, Ohio, United States

Butler Schein Health Supply is a distributor of companion animal health products to veterinarians. Butler Schein Health Supply is based in Dublin, Ohio.

Sell $155M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-04-09 Earth Fare

Asheville, North Carolina, United States

Earth Fare is a supermarket operator providing all-natural, organic, premium and specialty foods and products in the southeastern United States. Earth Fare was founded in 1975 and is based in Asheville, North Carolina.

Buy $300M
SELLER

Olympus Partners

Stamford, Connecticut, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1988
PE ASSETS 8.5B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Olympus Partners is a private equity group focused on investing in growth companies with strong management, and positions in their respective markets. The Firm will consider both venture capital and private equity investments and looks to commit $75 to $500 million per transaction. The Firm focuses its investment activities within the business services, healthcare, financial services, consumer, restaurant, software/IT services, and logistics/transportation industries. Olympus Partners was formed in 1988 and is based in Stamford Connecticut.


Deal Context for Seller #
Overall 25 of 50
Sector: Insurance 2 of 2
Type: Add-on Acquisition 12 of 24
Country: Bermuda 3 of 3
Year: 2012 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-01-03 NPC International

Overland Park, Kansas, United States

NPC International is a Pizza Hut franchisee in the United States with approximately 790 stores. NPC International operated stores in 26 states with significant presence in the Midwest, South and Southeast. NPC International was founded in 1962 and is based in Overland Park, Kansas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-07-09 Phoenix Services

Radnor, Pennsylvania, United States

Phoenix Services is a global provider of value-added industrial services to steel mills serving world class customers such as ArcelorMittal, Nucor Steel, and US Steel, among others. The Company has a global workforce of approximately 2,100 employees and operates in 34 locations on four continents. Phoenix Services was founded in 2006 and is based in Radnor, Pennsylvania.

Buy -
SELLER

Thomas H. Lee Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1974
PE ASSETS 35.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Thomas H. Lee Partners (THL) is a private equity firm that seeks buyout, expansion, consolidation, distressed, and recapitalization investments across various industries. Sectors of interest include business and information services, consumer products/retail, financial services, healthcare, industrial, and media/communications. THL looks to invest $100 to $400 million in companies valued up to $2.5 billion. THL was formed in 1974 and is based in Boston, Massachusetts.


Deal Context for Seller #
Overall 22 of 54
Sector: Insurance 5 of 6
Type: Add-on Acquisition 7 of 18
Country: Bermuda 4 of 4
Year: 2012 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-08-01 Cumulus Media Partners

Atlanta, Georgia, United States

Cumulus Media Partners, LLC owns and operates radio broadcasting stations. The company, through its AM and FM radio stations, serves listeners, communities, advertisers, and agencies in Dallas, Houston, San Francisco, Atlanta, Cincinnati, Indianapolis, York, Albemarle, and Anniston. The company was formerly known as Susquehanna Radio Corp. and it changed its name to Cumulus Media Partners, LLC in May, 2006.

Sell $740M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-05-29 Fogo de Chao

Dallas, Texas, United States

Fogo de Chao is a Brazilian steakhouse, or churrascaria, which has specialized in fire-roasting high-quality meats utilizing the centuries-old Southern Brazilian cooking technique of churrasco. Fogo de Chao was founded in 1979 and is based in Dallas, Texas.

Buy -

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