Standard Diversified Opportunities has completed its purchase of the parent entity of Maidstone Insurance Company.
In November 2016, Standard Diversified entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) with Interboro LLC to acquire all of the outstanding capital stock of Interboro Holdings (“Holdings”) for a cash purchase price of $2.5 million, subject to adjustment as provided in the Stock Purchase Agreement.
The Company has also agreed to contribute $10 million of new capital in connection with the closing of the transaction.
Through its wholly-owned subsidiary, Maidstone Insurance Company, Holdings offers personal automobile insurance, primarily in the State of New York. Maidstone is licensed to write personal property and/or automobile insurance in 24 states.
Ian Estus, President and CEO of the Company, stated, “The closing of the Maidstone acquisition completes the first step in the planned buildout of our insurance platform, Pillar General. Pillar General is focused on building a property & casualty insurance business that is designed to achieve favorable returns and consistent book value appreciation."
Debevoise & Plimpton LLP and Morgan, Lewis & Bockius LLP served as Standard Diversified’s legal counsel. Nixon Peabody LLP served as Interboro LLC’s legal counsel and Stonybrook Capital served as the exclusive financial adviser to Interboro LLC.