TowerBrook completes Orchid buyout from Gryphon

TowerBrook Capital Partners LP has closed its previously reported acquisition of Orchid Underwriters Agency LLC from Gryphon Investors. No financial terms were disclosed. Gryphon will maintain a “significant” equity stake in Orchid. Based in Vero Beach, Florida, Orchid is a managing general underwriter providing specialty P&C insurance products to homeowners, high-net worth individuals and small businesses throughout the U.S. and the Caribbean.

PRESS RELEASE

San Francisco – December 20, 2018 —Gryphon Investors (“Gryphon”), a San Francisco-based middle-market private equity firm, announced today that it has completed the sale of its portfolio company Orchid Underwriters Agency, LLC (“Orchid” or “the Company”) to TowerBrook Capital Partners L.P. (“TowerBrook”). Gryphon initially invested in the Company in November 2014, and will maintain a significant equity position in the Company post-closing. Financial terms of the transaction were not disclosed.

Based in Vero Beach, Florida, Orchid is a leading managing general underwriter (“MGU”) providing specialty P&C insurance products to homeowners, high net worth individuals and small businesses throughout the U.S. and the Caribbean. Orchid provides proprietary insurance solutions for “hard-to-place” risks to a growing, national network of retail agents and other strategic distribution partners. The Company maintains several long-standing partnerships with high-quality insurance and reinsurance carriers that provide consistent and, in many cases, exclusive risk capacity to Orchid.

Gryphon’s investment in the Company was a result of its continuing focus on the insurance services sector. During its ownership, Gryphon supported Orchid management by increasing the Company’s investments in IT infrastructure, business development and sales force expansion, and new product lines, while completing two add-on acquisitions.

Alex Earls, Partner at Gryphon and Head of the firm’s Business Services Group, said, “Gryphon is delighted to announce the sale of Orchid to TowerBrook, which we believe will be a terrific partner for the Company. We are also pleased to maintain a significant minority equity stake in Orchid. The Orchid investment exemplifies Gryphon’s strategy of partnering with talented management teams and industry executives to build market leaders, and we have enjoyed working closely with Orchid’s talented management team.”

Brad Emmons, President and CEO of Orchid, added, “We have been very pleased with our four years under Gryphon’s ownership, as their team brought many useful business insights, in addition to M&A and capital. Gryphon’s hands-on engagement and advisors enabled us to enter into new markets, complete two acquisitions, launch several new product lines, and more than double premiums written and earnings. And now, Orchid is thrilled to enter a new phase of growth with support and expertise from TowerBrook.”

Sandler O’Neill + Partners, L.P. served as financial advisor and Katten Muchin Rosenman LLP served as counsel to Orchid and Gryphon on the transaction.

About Orchid Underwriters Agency
Founded in 1998 and based in Vero Beach, FL, Orchid (orchidinsurance.com) specializes in providing specialty insurance products for homeowners and small businesses throughout the United States and the Caribbean. The Company’s comprehensive product offering provides customers with a single, comprehensive solution for homeowners and condominium property insurance, including wind and wind only, general and excess flood, earthquake, builder’s risk and others. Orchid aims to be agents’ first choice by offering superior process, policy and pricing options, high quality system technologies, expertise in the E&S market with coastally-exposed risks, and extensive knowledge of coastal CAT-exposed market areas in the East and Gulf Coast states. Orchid only represents well-known A.M. Best A-rated insurance carriers. Further information is available at www.orchidinsurance.com

About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) is a leading private equity firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management teams. The firm has managed over $4.5 billion of equity investments and capital since 1997. Gryphon targets making equity investments of $50 million to $200 million in portfolio companies with sales ranging from approximately $100 million to $500 million. Gryphon prioritizes investment opportunities where it can form strong partnerships with owners and executives to build leading companies, utilizing Gryphon’s capital, specialized professional resources, and operational expertise.