GulfStar Group Announces the Sale of CAIC Holding Company, Inc.
HOUSTON, Texas (January 25, 2011) — GulfStar Group is pleased to announce the sale of CAIC Holding Company, Inc. (CAIC) to Harco National Insurance Company (Harco), a subsidiary of IAT Reinsurance Company, Ltd. (“IAT”). GulfStar Group served as exclusive financial advisor to CAIC throughout the transaction, which closed on Dec. 31, 2010. BoyarMiller Shareholder Bill Boyar and Associates Forrest Gordon and Gavin Parker represented CAIC in the transaction.
CAIC, headquartered in Houston, Texas, is a leading specialized insurance company primarily providing liability insurance for Mexican-owned private passenger vehicles and commercial trucks when they enter the U.S. The Company’s product offerings include auto liability insurance for commercial and private passenger vehicles and workers’ compensation insurance. GulfStar initially represented management and an investor group, led by C. Byron Snyder III, in the purchase of CAIC from ING in Dec. 2003.
The GulfStar transaction team consisted of Managing Director Tom Hargrove and Analyst Jeff Maddox. GulfStar Managing Director Tom Hargrove said, “I am particularly pleased to have been a participant in the sale of CAIC after my initial involvement with the purchase of CAIC in 2003. CAIC has grown considerably under the leadership of Luis Bordes and Joussef Jerade, and has proven to be the leading provider of liability insurance for Mexican-owned automobiles and trucks entering the United States. The combination of IAT with CAIC will allow CAIC to increase its product offerings to new and existing customers as well as allow IAT to expand into new markets with significant growth opportunities.”
About the Buyer
Harco National Insurance Company provides property and casualty insurance products to the transportation industry and is a subsidiary of IAT Reinsurance Company, Ltd. IAT is a leading underwriter of property and casualty policies in the U.S.
GulfStar Group is a leading middle market investment and merchant bank headquartered in Houston, Texas. The firm specializes in providing merger and acquisition advisory services, institutional private placements of equity and debt, restructuring and turnaround advisory services and general corporate finance advisory services to companies with revenues or enterprise values generally ranging from $25 million to $350 million. Since its formation in 1990, GulfStar has completed more than 450 assignments across a variety of industries. Through its merchant banking affiliate the firm also makes equity and subordinated debt co-investments.