Republic Group ("Republic") announced that it has entered into a definitive agreement pursuant to which the holding company of RHP Management, LLC ("RHP Management") would acquire all of the outstanding shares of common stock of Republic Home Protectors, Inc. ("RHP") and Southern Vanguard Insurance Company ("SVIC").
RHP and SVIC are both subsidiaries of Republic. Under the terms of the agreement, the sale would include the business produced through RHP and written by SVIC (the "RHP Business"), but would exclude all other business written by SVIC through reinsurance arrangements entered into at closing that will remain in effect until all other business is renewed into affiliates of Republic.
The transaction has been approved by the boards of Republic and the members of RHP Management and Omena Partners, LLC and is expected to close in Q1 2014. Completion of the transaction is subject to certain conditions, including financing and customary regulatory approvals.
Upon completion of the transaction, the RHP Business will continue to be managed by Terry Cotter, President of RHP, under the new name of "RHP Managers, LLC", and the company’s headquarters will remain in Houston, Texas.
Mr. Joe Mattingly, Republic’s President and Chief Executive Officer, stated that "The proposed sale is attractive to our shareholders, allowing management to focus on our core regional company operations, reduce exposure concentrations and free up capital that strengthens our balance sheet."
Mr. Cory Moulton, Chairman of RHP Management, said "We are excited to work with Terry Cotter and his team to build on RHP’s success. We view the RHP Business as a premier insurance distribution niche with a strong operating platform and superior growth prospects."