Insurance firm AmTrust Financial Services has signed an agreement with wholesale grocery distributor Unified Grocers to acquire its Springfield Insurance Company, Unified Grocers Insurance Services (UGIS) and their related insurance operations.
Terms of the deal have not been disclosed.
As per terms of the deal, AmTrust will acquire Unified’s building in Covina of California from where Springfield and UGIS carries out operations. It will also hire all the employees working in the facility.
Unified Grocers president and CEO Bob Ling said: "We believe this transaction to be in the best interests of clients of both Springfield Insurance Company and UGIS as the businesses have been sold to a forward-looking, successful company that can apply a dedicated focus to their clients.
"The transaction will be seamless to policyholders. They will benefit from the strength of a $4bn, A.M. Best ‘A’ rated insurance provider and its wide portfolio of insurance products and can expect even greater offerings from AmTrust in the future."
Subject to regulatory approval and other customary closing conditions, the deal is expected to be completed between 90 and 120 days.
AmTrust, through its subsidiaries, provides specialty property and casualty insurance products, including workers’ compensation, commercial automobile, general liability and extended service and warranty coverage.