Genstar Sells Insurance Broker to ABRY Partners

ABRY Partners has acquired insurance broker Confie Seguros.

Boston-based ABRY Partners is buying the majority stake held by fellow private equity shop Genstar Capital, making this a secondary buyout. Financial terms of the transaction, which closed Nov. 9, weren’t announced. RBC Capital Markets and GE Capital provided debt financing.

“They believe in our strategy, our vision,” Mordy Rothberg, Confie Seguros’s president, says of ABRY. “They’re great guys. We’re excited about partnering with them as we take Confie Seguros to the next level.”

News of the sale was reported by peHUB in October. Confie Seguros produces more than $50 million EBITDA and was seeking bids of 10x, peHUB has reported.

Confie Seguros–which means “trusted insurance advisor”– is an insurance broker that targets Hispanic consumers. Genstar Capital, a San Francisco PE firm, formed the company in 2008 and committed to invest $75 million. Confie Seguros also received a $200 million bank facility from Merrill Lynch Capital, Madison Capital and Jefferies & Co. Genstar Capital’s plans for the company included building it into a national organization with more than $300 million in revenue. The investment came from Genstar Capital’s fifth fund, which closed at $1.55 billion in 2007.

Under Genstar Capital’s ownership, Confie Seguros grew to more than 300 retail locations. The broker produces revenue of more than $200 million and employs about 2,000 people, Rothberg says. No job cuts or management changes are expected, he says. Joe Waked, Confie Seguros’s CEO, and Rothberg, will continue in their roles.

“Over the next five years, we hope to take [Confie Seguros] to north of $500 million in revenues,” Rothberg told peHUB.

Confie Seguros, of Buena Park, Calif., has been on the acquisition hunt. The insurance broker has acquired 22 companies over the last 12 months and 40 in total, Rothberg says. “We believe we’re in the second inning of the Confie Seguros story.”

ABRY, an upper middle market PE firm, invests in healthcare services, media, communications and business information services. The firm’s investment in Confie Seguros comes from its seventh PE fund, which collected $1.6 billion.

Eric Goldstein of JP Morgan Securities, along with Marc Berman of RBC Capital Markets, provided financial advice to Confie Seguros. Alexander Sica, president and founder of SICA Consultants, advised ABRY.

Officials for ABRY and Genstar Capital couldn’t be reached for comment.

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