Stone Point acquire majority stake in loss adjusting group
Private equity firm Stone Point will acquire for approximately $80 million a 51% interest in a newly-formed holding company that will own the operating businesses of Cunningham Lindsey.
Fairfax will invest approximately $30 million and senior management of Cunningham Lindsey and its operating companies will be investing as well.
The proceeds from these investments will be used to repay Cunningham Lindsey's $72.8 million unsecured term loan facility and for working capital.
Jan Christiansen, Cunningham Lindsey's President and Chief Executive Officer said: "Since 1985, Stone Point has raised more than $10 billion in committed capital to make investments in the global insurance and financial services industries and has invested in more than forty insurance and financial services companies. Bringing in a new partner of this calibre with a proven track record of success will help us to accelerate our strategy for growth."
On completion of the proposed transaction, anticipated to occur by mid- December, Cunningham Lindsey's subordinate voting shares will be delisted from the Toronto Stock Exchange. The company's $125.0 million of 7% unsecured Series "B" debentures due June 16, 2008 will remain outstanding.Private equity firm Stone Point will acquire for approximately $80 million a 51% interest in a newly-formed holding company that will own the operating businesses of Cunningham Lindsey.
Fairfax will invest approximately $30 million and senior management of Cunningham Lindsey and its operating companies will be investing as well.
The proceeds from these investments will be used to repay Cunningham Lindsey's $72.8 million unsecured term loan facility and for working capital.
Jan Christiansen, Cunningham Lindsey's President and Chief Executive Officer said: "Since 1985, Stone Point has raised more than $10 billion in committed capital to make investments in the global insurance and financial services industries and has invested in more than forty insurance and financial services companies. Bringing in a new partner of this calibre with a proven track record of success will help us to accelerate our strategy for growth."
On completion of the proposed transaction, anticipated to occur by mid- December, Cunningham Lindsey's subordinate voting shares will be delisted from the Toronto Stock Exchange. The company's $125.0 million of 7% unsecured Series "B" debentures due June 16, 2008 will remain outstanding.
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