M&A Deal Summary

Stone Point Capital and BlackRock Capital Investment Acquire Higginbotham

On December 1, 2009, private equity firm Stone Point Capital and business development company BlackRock Capital Investment acquired insurance company Higginbotham from LNC Partners

Acquisition Highlights
  • This is Stone Point Capital’s 19th and BlackRock Capital Investment’s 1st transaction in the Insurance sector.
  • This is Stone Point Capital’s 25th and BlackRock Capital Investment’s 17th transaction in the United States.
  • This is Stone Point Capital’s 2nd and BlackRock Capital Investment’s 2nd transaction in Texas.

M&A Deal Summary

Date 2009-12-01
Target Higginbotham
Sector Insurance
Buyer(s) Stone Point Capital
BlackRock Capital Investment
Sellers(s) LNC Partners
Deal Type Secondary Buyout

Target

Higginbotham

Fort Worth, Texas, United States
Higginbotham is an insurance, risk management, and financial services firm that provides its clients with access to commercial and personal property & casualty coverage, employee benefits, retirement plans, life insurance, and executive compensation solutions through more than 250 regional and national insurance carriers. Higginbotham was founded in 1948 and is based in Fort Worth, Texas.

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Buyer(S) 2

Buyer

Stone Point Capital

Greenwich, Connecticut, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1994
PE ASSETS 25.0B USD
Size Mega
Type Sector Focused
DESCRIPTION

Stone Point Capital is a private equity firm that targets investments in financial services sector. Specific areas of interest include insurance underwriting, outsourcing service providers to financial institutions, specialty lending and other credit opportunities, employee benefits and healthcare, asset management/retirement savings, and banking/depository institutions. Stone Point looks to commit between $5 and $500 million of equity per transaction and will consider control or substantial minority positions. Geographic areas of interest include North America and Europe. Stone Point Capital was formed in 1994 and is based in Greenwich, Connecticut.


DEAL STATS #
Overall 32 of 114
Sector (Insurance) 19 of 31
Type (Secondary Buyout) 2 of 26
State (Texas) 2 of 8
Country (United States) 25 of 101
Year (2009) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2009-07-05 Paris Re Holdings

Zug, Switzerland

Paris Re Holdings Ltd. is a property and casualty reinsurer with a global market presence.

Sell $2.0B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-03-03 Amherst Pierpont Securities

New York, New York, United States

Amherst Pierpont Securities is an independent broker-dealer that provides to institutional clients liquidity, execution services, and strategic advice pertaining to the US Treasury, federal agency, and repurchase markets. The firm has assembled a group of talented and seasoned professionals recruited from many of the leading global financial institutions. Amherst Pierpont Securities is based in New York.

Buy $220M
Buyer

BlackRock Capital Investment

New York, New York, United States

Investor Investor Investor Investor Investor


Category Business Development Company
Founded 2005
PE ASSETS 1.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

BlackRock Capital Investment is a publicly traded business development company (BDC) that provides middle-market companies with a variety of financing solutions. This includes senior and junior secured, unsecured and subordinated debt securities and loans, as well as equity. BlackRock Capital targets profitable companies with strong management and defensible market positions that may be underserved by traditional lending sources. The Firm looks to commit $10 to $50 million in businesses generating $10 to $50 million of EBITDA. BlackRock was formed in 2005 by BlackRock and Kelso & Company. The Firm has offices in New York City and Chicago.


DEAL STATS #
Overall 18 of 33
Sector (Insurance) 1 of 1
Type (Secondary Buyout) 4 of 11
State (Texas) 2 of 3
Country (United States) 17 of 26
Year (2009) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2009-07-17 Alpha Media Group

New York, New York, United States

Alpha Media Group Inc. is a multimedia company and publisher of MAXIM, the largest young men’s lifestyle brand in America, which reaches nearly 9 million readers each month. MAXIM Digital reaches more than 4 million unique viewers each month. MAXIM magazine publishes 16 editions, sold in 75 countries worldwide.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-01-01 Crockett Cogeneration

Crockett, California, United States

Crockett Cogeneration is a 240 MW gas-fired cogeneration facility that sells capacity and energy to Pacific Gas and Electric Company and steam to C&H Sugar Company, Inc. pursuant to long-term contracts. Crockett Cogeneration was founded in 1996 and is based in Crockett, California.

Buy -

Seller(S) 1

SELLER

LNC Partners

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2010
PE ASSETS 700M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

LNC Partners is a private investment firm focused on providing $10 to $30 million of equity and junior capital to support a variety of company transactions. As a provider of debt, LNC offers subordinated debt and unitranche securities. As a provider of equity, LNC will invest as a minority or majority partner. Prospective transaction situations include buyouts, refinancings, acquisition financings, growth capital needs, and recapitalizations. Sectors of interest include business and information services, financial services, insurance, healthcare, and niche manufacturing. LNC Partners is based in Reston, Virginia.


DEAL STATS #
Overall 10 of 26
Sector (Insurance) 1 of 2
Type (Secondary Buyout) 7 of 14
State (Texas) 1 of 2
Country (United States) 10 of 26
Year (2009) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2009-06-24 Insight Pharmaceuticals

Langhorne, Pennsylvania, United States

Insight Pharmaceuticals Corp. is a consumer products company provides consumer OTC products.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-04-01 Regency Healthcare Group

Nashville, Tennessee, United States

Regency Healthcare Group is a Medicare-certified provider of home-based hospice services serving Birmingham and northeast and central Alabama, Georgia, South Carolina, Tennessee, Missouri, and Florida.

Sell -