Following the transaction, which implies a total equity value of around $316m for the insurer, Trean’s common stock will no longer be traded on NASDAQ.
Currently, Altaris has around 47% stake in Trean. Under the terms of the transaction, the investment firm plans to buy the remaining stake for a price of $6.15 per share.
Trean is engaged in providing speciality products and services.
The firm is said to underwrite workers’ compensation and speciality casualty insurance offerings via its producers, programme partners and its managing general agencies.
It also offers a range of services to its programme partners, such as issuing carrier services, claims management, and reinsurance brokerage.
Trean is authorised to write insurance in 49 states of the US and the District of Columbia.
Altaris co-founder and managing director Daniel Tully said: “We believe that Trean’s speciality insurance products and services are highly differentiated in the market, and we look forward to contributing our resources and expertise to support the company’s next phase of growth.”
Trean president and CEO Julie Baron said: “This agreement with Altaris delivers immediate and substantial value to all stockholders of Trean while positioning the company to continue its focus on strong partnerships, underwriting discipline and exceptional claims management to drive growth over the long term.
“As a long-term investor in the company, Altaris is deeply familiar with our business and recognises the value of our talented team, and we look forward to Altaris’ continued contributions to Trean as a private company.”
Following the acquisition, it is anticipated that Baron will continue to serve as Trean’s president and CEO and that Andrew O’Brien, Trean’s founder and executive chairman of the board, will remain a board member.
The deal is expected to close in the first half of 2023.