A wholly-owned subsidiary of Bermuda-based Enstar Group (ESGR) has acquired SeaBright, a multi-jurisdictional workers' compensation insurance company, as part of an agreement originally proposed in August 2012.

Based on the terms of the merger agreement, SeaBright will now operate as a wholly-owned subsidiary of the acquirer, while its insurance operations are managed by Enstar in run-off.

The aggregate purchase price of nearly $252m has been funded through a mixture of cash on hand and a bank loan facility, provided by National Australia Bank Limited and Barclays Bank.

Commenting on the acquisition, Enstar chief executive officer Dominic Silvester said, "We continue to focus on expanding in the U.S., and we believe SeaBright will be a significant addition to our portfolio.

Sandler O’Neill + Partners served as financial advisor to SeaBright and delivered a fairness opinion in connection with the transaction.

Kirkland & Ellis acted as legal advisor, while Mayer Brown worked as special regulatory counsel to SeaBright. Drinker Biddle & Reath offered legal advice to Enstar.

SeaBright and its subsidiaries registered total assets of nearly $1.1bn and total liabilities of almost $745, in its quarterly report on Form 10-Q for the third quarter of 2012.

Enstar acquires and operates insurance and reinsurance firms and their business portfolios in run-off, and caters management, consultancy and other services to the industry.