Republic Group Enters Agreement with RHP Management, LLC and Omena Partners, LLC for the Sale of Republic Home Protectors, Inc. and Southern Vanguard Insurance Company
DALLAS, Oct. 22, 2013 /PRNewswire/ -- Republic Group ("Republic") today announced that it has entered into a definitive agreement pursuant to which the holding company of RHP Management, LLC ("RHP Management") would acquire all of the outstanding shares of common stock of Republic Home Protectors, Inc. ("RHP") and Southern Vanguard Insurance Company ("SVIC").
RHP and SVIC are both subsidiaries of Republic. Under the terms of the agreement, the sale would include the business produced through RHP and written by SVIC (the "RHP Business"), but would exclude all other business written by SVIC through reinsurance arrangements entered into at closing that will remain in effect until all other business is renewed into affiliates of Republic.
The transaction has been approved by the boards of Republic and the members of RHP Management and Omena Partners, LLC and is expected to close in Q1 2014. Completion of the transaction is subject to certain conditions, including financing and customary regulatory approvals.
Upon completion of the transaction, the RHP Business will continue to be managed by Terry Cotter, President of RHP, under the new name of "RHP Managers, LLC", and the company's headquarters will remain in Houston, Texas.
Mr. Joe Mattingly, Republic's President and Chief Executive Officer, stated that "The proposed sale is attractive to our shareholders, allowing management to focus on our core regional company operations, reduce exposure concentrations and free up capital that strengthens our balance sheet."
Mr. Cory Moulton, Chairman of RHP Management, said "We are excited to work with Terry Cotter and his team to build on RHP's success. We view the RHP Business as a premier insurance distribution niche with a strong operating platform and superior growth prospects."
Republic Companies, Inc. through a group of insurance companies and related entities provides personal and commercial property and casualty insurance products. In its Independent Agents segments, Republic distributes these products to individuals and small to medium-size businesses through a network of independent agents primarily in Texas, Louisiana, Oklahoma, Arkansas, Mississippi and New Mexico. In its Program Management and Insurance Services segments Republic capitalizes on its unique combination of charters and licenses to develop and manage target-niche insurance products that are distributed through managing general agents in many additional states. Visit www.RepublicGroup.com for more information.
SOURCE Republic Group