BCP Concludes Sale of The Gray Casualty & Surety Company
BCP, a private equity management firm focusing on services and infrastructure, has successfully finalized the sale of The Gray Casualty & Surety Company, often known as Gray Surety, to Palomar Holdings, Inc. (NASDAQ: PLMR). This notable transaction aligns with BCP's strategy of enhancing value through selective divestitures.
Growth and Development of Gray Surety
Since BCP's significant investment in Gray Surety back in 2021, the company has distinguished itself in the surety bond industry, particularly in providing contract bonds to mid-sized and emerging contractors across the nation. With a presence in all 50 states and supported by 13 regional offices, Gray Surety has made remarkable strides under the guidance of a skilled management team.
Strategic Value Creation
Upon completing the acquisition, Jeff Koonce, a partner at BCP, reflected on the successful journey, stating, "Closing the Gray Surety sale marks a vital milestone in BCP's disciplined investment approach. Since 2021, Gray Surety expanded its operations significantly, enhancing its status as a reliable surety partner for contractors. We celebrate the team's remarkable achievements and growth during our partnership."
Looking Ahead with Palomar
In his comments, Cullen Piske, President of Gray Surety, emphasized the positive impact of BCP's operational strategies over the past four years. He noted the firm’s support in scaling their business and extending their reach nationwide, expressing enthusiasm about their future with Palomar Holdings.
Recent Transactions and Future Outlook
This transaction represents just one of several that BCP has navigated in the latter half of the past year. Notably, the sales of Brown & Root Industrial Services and United Utility have also been part of BCP’s recent strategic divestitures, diversifying and optimizing their investment portfolio.
Advisors and Professional Support
The complexities surrounding the sale were managed with the expertise of seasoned firms. J.P. Morgan served as the exclusive financial advisor to Gray Surety, while Kirkland & Ellis LLP provided legal counsel. On the other side, Evercore was the exclusive financial adviser to Palomar, working in tandem with DLA Piper LLP for legal advisory.
About BCP
Established in 2013, BCP is a management firm specializing in services and infrastructure investments. With a strong track record, BCP has successfully raised capital across five funds, amassing $6 billion in assets. The firm is dedicated to driving sustainable value, leveraging expertise in acquiring and growing businesses within its focus sectors.
About Gray Casualty & Surety Company
Gray Surety, founded in 1996 and initially a subsidiary of The Gray Insurance Company, has grown into a formidable provider of contract surety bonds across the United States. The company’s solid reputation and national presence among top surety carriers highlight its important role in the industry.
Frequently Asked Questions
What is the significance of BCP's sale of Gray Surety?
The sale underscores BCP's disciplined investment strategy and its ability to drive growth in its portfolio companies.
Who were the advisory firms involved in the transaction?
J.P. Morgan and Kirkland & Ellis LLP acted as advisors for Gray Surety, while Evercore and DLA Piper LLP advised Palomar.
What does Gray Surety specialize in?
Gray Surety focuses on providing contract surety bonds to mid-sized and emerging contractors across the United States.
When did BCP invest in Gray Surety?
BCP made a significant investment in Gray Surety in 2021, aiming to leverage its growth potential in the surety bond market.
What is BCP's overall investment strategy?
BCP seeks to create sustainable value through strategic investments in services and infrastructure businesses, focusing on operational excellence.
