(Reuters) -Investment firm Sixth Street will acquire Enstar for $5.1 billion, in a deal backed by former Treasury Secretary Steven Mnuchin and billionaire J Christopher Flowers, the insurer said on Monday.
The deal will allow Sixth Street, an existing Enstar investor with a nearly 4.7% stake, to gain a foothold in the property and casualty insurance market.
Enstar shareholders will receive $338 per share in cash, a nearly 3% discount to the stock’s last closing price on Friday. The insurer’s shares fell nearly 6%.
Mnuchin’s Liberty Strategic Capital, J.C. Flowers and other institutional investors have also agreed to participate in the deal, which is expected to close in mid-2025, Enstar said.
Enstar is allowed a 35-day “go-shop” period, expiring on Sept. 2, in which it can seek alternative acquisition offers.
Goldman is advising Enstar, while Ardea Partners, Barclays and J.P. Morgan Securities are the advisers to Sixth Street.
Sixth Street manages more than $75 billion of assets and has invested in businesses ranging from Airbnb to Bay FC, a professional women’s soccer franchise.