July 4, 2018 by Staff
Navacord Inc. has partnered with private equity investment firm Madison Dearborn Partners (MDP) to enter into a management-led buyout of its minority capital partner.
The deal is aimed at accelerating Navacord’s organic growth strategy and supporting the addition of future Navacord broker partners across Canada.
“MDP is a strong partner with deep insurance services expertise and shares our vision for success and ongoing value creation,” T. Marshall Sadd, executive chairman and co-founder of Navacord, said in a news release. “We are looking forward to partnering with MDP to deepen our relationships with our clients, create more opportunities for our employees and continue to grow our company.”
Established in 2014, Navacord was created to bring together like-minded entrepreneurial brokerages “with the goal of building a Great Canadian Brokerage,” the company said in a release. Navacord offers a broad suite of capabilities in commercial P&C insurance and employee benefits consulting, and operates under nine different broker partner brands throughout Ontario, Alberta and British Columbia.
“Today, Navacord is the fifth largest commercial broker in Canada with 80% of our revenue from commercial insurance and over $700 million in premium. Our partnership group is young, with an average age of 44,” said Shawn DeSantis, CEO and co-founder of Navacord. “These factors, combined with MDP’s expertise and a strong pipeline of new broker partners looking to join Navacord, positions us to continue our growth story in the years to come.”
Terms of the transaction, which is expected to close in the third quarter of 2018, were not disclosed.
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This story was originally published by Canadian Insurance Top Broker.