Private equity firm J.C. Flowers & Co. LLC has agreed to acquire AmeriLife Group, an independent distributor of annuity, life and health insurance products.
The deal marks an exit for Reservoir Capital Group and Black Diamond Capital Partners, which have owned AmeriLife since 2007. Terms of the transaction were not disclosed, but the price tag was reportedly around $500 million.
The company’s management has agreed to reinvest a significant portion of their proceeds alongside J.C. Flowers. AmeriLife specializes in servicing the senior market.
Investment bank Evercore Partners has been advising Clearwater, Florida-based AmeriLife on the sale process since September. Akin Gump Strauss Hauer and Feld LLP has acted as legal adviser to Reservoir Capital Group.
Morgan Stanley & Co. has acted as financial adviser to J.C. Flowers in the transaction, and Debevoise & Plimpton LLP has acted as its legal adviser.
The transaction comes as more insurance companies conduct M&A to achieve growth. For more on insurance consolidation, see Insurance Firms Find that Bigger May Be Better.
Other recent deals include Golden Gate Capital's backing Nassau Reinsurance Group, and Canadian private equity firm Onex Corp.'s purchase of York Risk Services Group Inc., an insurance claims services provider, for $1.33 billion.