Trean Insurance Group has struck a deal to be acquired by a New York-based private equity firm for $6.15 per share.
The transaction price is a 97% premium over Trean's closing price yesterday. The deal with Altaris Capital Partners would value Trean at $316 million.
On Friday, Trean's stock was up 91.5% for the day, bringing it close to the $6.15 per share that Altaris is paying.
"This agreement with Altaris delivers immediate and substantial value to all stockholders of Trean while positioning the company to ... drive growth over the long term," Julie Baron, CEO of Trean, said in a statement.
Trean sells property and casualty insurance for specialty markets, particularly workerscompensation insurance markets, primarily through its subsidiary Benchmark Insurance Co.
Wayzata-based Trean went public in 2020. Altaris, a healthcare investment firm, already owns 47% of the company.
"We have known Trean for many years," Daniel Tully, co-founder and managing director of Altaris, said in a statement. "We believe that Trean's specialty insurance products and services are highly differentiated in the market."
Trean has seen strong growth. The company posted revenue of $217.7 million in 2021, more than double its sales in 2019.
Last month, it reported third quarter revenue of $76.5 million, a 34% increase from a year ago.
Altaris owns three other Minnesota companies: St. Paul-based Minnetronix Medical, Arden Hills-based Intricon Corp. and Woodbury-based Kindeva Drug Delivery.
The deal is slated to close in the first half of 2023. Baron is expected to remain CEO after the transaction closes.
Trean founder Andrew O'Brien will continue to serve on the board of directors.
