Odyssey Investment Partners to Acquire York, Announces Investment Partnership with John L. WardDecember 27, 2005
New York, December 27, 2005 - Odyssey Investment Partners ("Odyssey"), announced today the signing of a definitive agreement under which Odyssey will acquire York Insurance Services Group, Inc. ("York" or the "Company"). Odyssey's partners in this transaction are Thomas C. MacArthur, York's Chairman and Chief Executive Officer, other members of senior management and Cincinnatus Partners, a Cincinnati-based advisory firm founded by John L. Ward. The primary selling shareholder is Bexil Corporation (AMEX: BXL). The total transaction value will be approximately $105 million including assumption of debt, rollover shares and management investment.
Odyssey also announced that it will form Odyssey Insurance Services, a partnership between Odyssey and Cincinnatus Partners to evaluate, structure and make co-investments in insurance services companies. The acquisition of York will be Odyssey's first investment in partnership with Odyssey Insurance Services.
Headquartered in Parsippany, New Jersey, York is a leading outsourcer of specialty claims management to niche market segments of the property and casualty industry throughout the United States. The Company provides comprehensive claims, data, and risk related services to specialty programs, residual markets, self-insured entities, insurance companies and related intermediaries. Following completion of the transaction, Mr. MacArthur will remain Chairman and Chief Executive Officer of York, and John L. Ward, Chief Executive Officer of Cincinnatus Partners, will become Vice Chairman.
Douglas Rotatori, a Managing Principal of Odyssey, said, "We identified the outsourcing of insurance services as an attractive area for investment a few years ago and have been actively targeting this growing sector. We are pleased to formally begin this investment initiative with the acquisition of York, a dynamic company that has exhibited strong growth as a result of its unique capabilities and superior customer service. We look forward to working with Tom MacArthur and the York management team to build on the Company's strengths through organic and acquisition growth opportunities available to the Company."
Jeffrey McKibben, a Principal of Odyssey, said: "We are very pleased to partner with John L. Ward to pursue attractive investment opportunities in the insurance services sector. John has a strong track record of success in the insurance industry, with great relationships and knowledge. We have known John for many years, worked with him closely on the York transaction and believe he will be a valuable contributor to our investments."
Tom MacArthur, said, "We have found a great group of partners in Odyssey and John L. Ward, as they share our vision for York to become a broader based provider of outsourced insurance services. We believe that our differentiated service offering and motivated management team, combined with Odyssey's strategic input and acquisition expertise, and John's deep knowledge of the insurance industry, will be a winning formula for York to expand its well-regarded franchise."
John L. Ward, said, "York is truly a special company. Its talented and experienced team, multiple centers of excellence and scalable business processes have resulted in significant indemnity dollar savings for its clients, which drives lower costs for commercial and individual accounts."
The transaction will result in the acquisition of 100% of the outstanding shares of York owned by Bexil. Mr. MacArthur is selling a portion of his current stock but will retain a significant stake in the Company, remaining the largest individual shareholder. Other York management will also acquire a significant stake in the Company. Completion of the transaction, which is expected to occur during the first quarter of 2006, is subject to financing, the receipt of regulatory and other third-party approvals and customary closing conditions.
Odyssey Investment Partners, LLC, based in New York , is a leading middle-market private equity fund with more than $1.2 billion under management. Odyssey makes majority, control investments primarily in established middle-market companies in a variety of industries, including industrial manufacturing, business, financial and healthcare services, aerospace products and services, and route-based services. For further information about Odyssey, please visit www.odysseyinvestment.com.
Cincinnatus Partners is a Cincinnati-based advisory firm specializing in the insurance services industry. Through its proprietary Think Like an Investor® program, the firm works with a select group of insurance services companies to help them build enterprise value. The firm's experienced team works closely with senior management at these companies to improve their current product offering, expand their scope of services and more effectively serve their insurance industry clientele. For further information about Cincinnatus Partners, please visit www.cincinnatuspartners.com.
York is an insurance services business process outsourcing company. Since the 1930's, York (through predecessor companies) has served both as an independent adjustment company and third party administrator providing claims data and risk related services to insurance companies, reinsurers, self insureds, and intermediaries throughout the United States. More recently, York has established business units in the program management, licensed private investigation, recovery, environmental consulting, retail logistics and large/complex loss adjusting markets. For further information about York, please visit www.yorkclaims.com.
For more information, please contact:
Odyssey Investment Partners
Kekst and Company
John L. Ward
Chief Executive Officer
York Insurance Services
Thomas C. MacArthur
Chairman and CEO