Ironshore purchases remaining 80% stake in surety providerPosted On: Apr. 11, 2016 12:00 AM CST
Ironshore Inc. said it has reached an agreement to acquire the remaining 80% of Lexon Surety Group L.L.C. in an all-cash deal.
Hamilton, Bermuda-based Ironshore said the purchase, the price of which was not disclosed, is expected to close later this year, subject to regulatory approvals and other conditions.
Ironshore has held a 20% stake in Lexon since 2014 and made an initial investment in the Nashville, Tennessee surety provider in 2013.
Lexon’s $135 million in annual direct written premiums includes contract surety bonds, commercial surety bonds, court surety and probate surety bonds, and U.S. customs surety bonds. It underwrites in 49 states, the District of Columbia and certain U.S. properties overseas.
“Our strategic alliance with Lexon over the past three years has benefited Lexon’s producers and customers, and we look forward to enhancing our services for them in the years ahead,” Ironshore CEO Kevin Kelley said Sunday in a statement.
The relationship with Ironshore has furthered “our expansion goals and robust underwriting capabilities to meet sector demand from our distribution platform,” Lexon President and CEO David Campbell said in the statement.
“This acquisition also reflects close collaboration between Ironshore and Fosun International Ltd. continuing to support efforts to broaden Ironshore’s business,” Mr. Kelly said in the statement.
Shanghai-based Fosun, which last year purchased the remaining 80% of Ironshore for $1.8 billion, in March said it was considering an initial public offering of Ironshore.