American Family Insurance has inked an acquisition agreement to purchase Permanent General Companies Holdings (PGC ) and its subsidiaries, including non-standard auto insurers Permanent General and The General for almost $239m.
The deal, which is expected to complete this year after receiving regulatory approval, will strengthen acquirer’s presence in the new states and markets in the US.
Expressing his view on the transaction, American Family chairman and chief executive officer Jack Salzwedel said the acquisition of Permanent General will help the company gain a substantial customer base in the new region.
"This acquisition expands our holdings to include a company with different capabilities that also operates in some states we don’t currently serve," Salzwedel added.
Upon closing of the deal, PGC Holdings will continue to trade as a separate brand from American Family and operate independently.
The acquirer will retain the existing employs, and Permanent General’s chief executive officer Randy Parker will retain his position.
American Family offers auto, home, business, farm/ranch and life insurance in 19 states through its network of 3,500 agents.
Willis Capital Markets & Advisory provided financial advice to Permanent General Companies, while Goldman, Sachs and Co served as financial advisor to American Family.