Insurance provider Amwins Group completed $1 billion shares purchase of a significant recapitalization deal with its existing shareholder groups, on Wednesday.
The company said in connection with the deal of private equity firms like Dragoneer Investment Group, Genstar Capital, SkyKnight Capital and employee shareholders, it purchased $1 billion in equity from more than 375 Amwins employee shareholders and Public Sector Pension Investment Board (PSP).
Investopedia defines recapitalization as the process of restructuring a company’s debt and equity mixture, often to stabilize a company’s capital structure.
PSP rolled 80% of their equity position forward, said the P&C wholesale broker. After completion of the recapitalization deal, employee shareholder group will remain the largest single ownership group with about 40% ownership of Amwins, the firm added.
“As a private company, we believe in providing our shareholder base periodic opportunities for liquidity and through the combination of dividends and sale opportunities, we have provided our shareholders with over $4.1 billion in liquidity since 2018,” said Scott Purviance, executive chief of Amwins.
Purviance also said, “Having an existing shareholder base looking to increase their investment speaks to the stability and growth prospects for our business, our shareholders’ long-term investment mindset uniquely positions us to focus on our clients and enhances our ability to execute our 150-year vision.”
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