Investment firm Sixth Street entered a deal on July 29, 2024, to acquire Enstar Group Limited (ESGR) for about $5.1 billion.
According to the terms of the agreement, Sixth Street, which owns about 4% of the insurer, will pay Enstar shareholders $338.00 in cash per ordinary share of Enstar, which is at a discount of 2.96% from the stock’s last close.
The deal is backed by former Treasury Secretary Steven Mnuchin and billionaire J. Christopher Flowers.
Enstar is a global insurance company that buys and manages insurance businesses and portfolios that are no longer active, providing solutions for releasing capital and offering various consulting services.
Sixth Street is a global investment firm with over $75 billion in assets, offering flexible capital and solutions to companies at different stages of growth.
Mnuchin’s Liberty Strategic Capital, J.C. Flowers, and other investors have agreed to join the deal, which is expected to close in mid-2025, to take Enstar private.
Enstar has a 35-day “go-shop” period, ending on September 2, to look for other acquisition offers.
Enstar’s current Price/Book (TTM) ratio is 0.92, below the sector median of 1.28.
For a more detailed analysis of this merger and acquisition transaction, please refer to the Deal Metrics page here:
Deal Metrics for the acquisition of Enstar Group Limited (ESGR) by Sixth Street
The Deal Metrics page for each merger or acquisition includes:
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Editor’s Note: Baranjot Kaur contributed to this article