M&A Deal Summary

Ontario Teachers Pension Plan, Century Equity Partners and Penfund Acquire BroadStreet Partners

On February 7, 2012, pension Ontario Teachers Pension Plan, private equity firm Century Equity Partners and mezzanine finance firm Penfund acquired insurance company BroadStreet Partners from State Automobile Mutual Insurance

Acquisition Highlights
  • This is Ontario Teachers Pension Plan’s 3rd, Century Equity Partners’ 12th and Penfund’s 1st transaction in the Insurance sector.
  • This is Ontario Teachers Pension Plan’s 21st, Century Equity Partners’ 15th and Penfund’s 3rd transaction in the United States.
  • This is Ontario Teachers Pension Plan’s 2nd, Century Equity Partners’ 1st and Penfund’s 1st transaction in Ohio.

M&A Deal Summary

Date 2012-02-07
Target BroadStreet Partners
Sector Insurance
Buyer(s) Ontario Teachers Pension Plan
Century Equity Partners
Penfund
Sellers(s) State Automobile Mutual Insurance
Deal Type Divestiture

Target

BroadStreet Partners

Columbus, Ohio, United States
BroadStreet Partners is an insurance brokerage holding company that invests in select, entrepreneurial, high-performing independent agencies that are seeking support for continued growth and a solution for ownership succession. BroadStreet uses a unique co-ownership model that allows its partners to fully participate in the financial rewards of the value they create. BroadStreet Partners was founded in 2001 and is based in Columbus, Ohio.

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Buyer(S) 3

Buyer

Ontario Teachers Pension Plan

Toronto, Ontario, Canada

Investor Investor Investor Investor Investor


Category Pension
Founded 1990
PE ASSETS 242.5B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Teachers' Private Capital is the direct investment arm of the Ontario Teachers' Pension Plan. Teachers' Private Capital considers both private equity and venture related investments in North America, Europe, and Asia. Teachers' can support direct private equity investments between $100 million and $3 billion. Target sectors include business services, consumer products, retail, diversified industrials, financial services, technology, media, and communications. Teachers' Private Capital also makes private equity fund investments between $50 million and $750 million. Teachers' Private Capital was formed in 1991 and is based in Toronto, with additional offices in London and New York.


DEAL STATS #
Overall 49 of 175
Sector (Insurance) 3 of 7
Type (Divestiture) 6 of 15
State (Ohio) 2 of 4
Country (United States) 21 of 72
Year (2012) 1 of 12
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-02-03 Aquilex

Atlanta, Georgia, United States

Aquilex Corp. is a provider of critical maintenance, repair and industrial cleaning solutions to the energy industry.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-02-15 Blue Coat Systems

Sunnyvale, California, United States

Blue Coat is an enterprise security, providing on-premise, hybrid and cloud-based solutions for protecting web connectivity, combating advanced threats and responding to security breaches. Blue Coat is the global market leader in securing connection to the web and counts nearly 80 percent of the Global Fortune 500 as its customers.

Buy $1.3B
Buyer

Century Equity Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 885M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Century Equity Partners is an asset management firm invests in lower middle-market companies located in the US. Century Equity Partners focuses on companies with rapidly growing, profitable businesses led by strong management teams with an enterprise value between $15 and $300 million and equity capital ranging from $5 to $30 million and in conjunction with its limited partners and select co-investors can commit up to $100 million to a single transaction. The Firm targets companies operating in the fields of financial services, insurance, and healthcare services. Types of transactions include buyouts and growth capital. It seeks minority interest and also considers co-invests. Century Equity Partners was formed in 1987 and is based in Boston, Massachusetts.


DEAL STATS #
Overall 21 of 34
Sector (Insurance) 12 of 15
Type (Divestiture) 1 of 1
State (Ohio) 1 of 1
Country (United States) 15 of 27
Year (2012) 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-01-04 Thompson Insurance Enterprises

Kennesaw, Georgia, United States

Thomco manages programs that provide comprehensive insurance solutions for the Child Care, Senior Living, Medical Transportation, Fitness Center, Pest Control, Social Service, and Tanning Salon markets.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-12-03 Digital Risk

Maitland, Florida, United States

Digital Risk, LLC provides mortgage data analytics and risk mitigation services to global financial institutions. The company’s unique 360° Risk Analytics product offering integrates real-time fraud detection algorithms and predictive modeling with forensic underwriting services to provide its customers with actionable output.

Sell $202M
Buyer

Penfund

Toronto, Ontario, Canada

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1979
PE ASSETS 2.7B CAD
Size Large
Type Sector Agnostic
DESCRIPTION

Penfund is a private investment firm that provides equity, junior capital, and alternative financing to Canadian-based middle-market companies with EBITDA of at least C$20 million. Penfund can commit up to C$225 million per transaction. Penfund does not have any industry preferences and its investments are generally used to support growth needs, recapitalization, shareholder liquidity, acquisitions, and buyouts. Penfund was formed in 1979 and is based in Toronto.


DEAL STATS #
Overall 10 of 28
Sector (Insurance) 1 of 1
Type (Divestiture) 1 of 1
State (Ohio) 1 of 1
Country (United States) 3 of 14
Year (2012) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-01-17 Del Monte Canada

Toronto, Ontario, Canada

Del Monte Canada, Inc. is a provider of canned fruits, refrigerated fruits, and canned tomatoes and vegetables in Canada.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-11-02 Jet Equipment & Tools

Coquitlam, British Columbia, Canada

Jet Equipment & Tools Ltd. is a distributor of professional grade tools and equipment. Jet Equipment & Tools is based in Coquitlam, British Columbia.

Buy -

Seller(S) 1

SELLER

State Automobile Mutual Insurance

Columbus, Ohio, United States

Category Company
Founded 1921
Sector Insurance
DESCRIPTION

State Automobile Mutual Insurance Company, a property and casualty insurance holding company and one of only 13 companies to be rated A+ (Superior) by the A.M. Best Company every year since 1954.


DEAL STATS #
Overall 1 of 1
Sector (Insurance) 1 of 1
Type (Divestiture) 1 of 1
State (Ohio) 1 of 1
Country (United States) 1 of 1
Year (2012) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2009-02-10 Rockhill Insurance

Kansas City, Missouri, United States

Rockhill writes approximately $120 million in specialty property and casualty direct written premium through four insurance company subsidiaries.

Buy -