J.C. Flowers To Acquire AmeriLife

CLEARWATER, Fla.--(BUSINESS WIRE)--AmeriLife Group (“AmeriLife” or the “Company”), the nation’s premier independent distributor of annuity, life and health insurance products focused on serving the senior market, today announced that it has entered into a definitive agreement to be acquired by J.C. Flowers & Co. LLC (“J.C. Flowers”), a leading private investment firm dedicated to investing in the global financial services industry, from Reservoir Capital Group and Black Diamond Capital Partners. The Company’s management has agreed to reinvest a significant portion of their proceeds alongside J.C. Flowers. Terms of the transaction were not disclosed.

AmeriLife develops annuity, life and health insurance products in partnership with its insurance carrier partners and markets these products through its multi-channel distribution network, which includes a career distribution system and over 100,000 independent agents. AmeriLife’s insurance distribution platform, along with its third party administration business, generated over $1.5 billion in premiums during 2014 on behalf of its more than 75 insurance carrier partners.

“We are excited to partner with J.C. Flowers and access the firm’s specialized knowledge and deep relationships in the financial services world,” said Timothy O. North, Chief Executive Officer of AmeriLife. “J.C. Flowers has a strong track record of adding considerable value to its financial enterprises, and we believe that will translate into substantial benefits for our agents and their customers. As partners of J.C. Flowers in AmeriLife, Gary Jenkins and I are looking forward to investing in the Company.”

“Today, as a result of significant investments made by Reservoir and Black Diamond, AmeriLife is better positioned, has dramatically increased the breadth of our business and is well prepared to take advantage of new opportunities,” said Gary Jenkins, President of AmeriLife.

Since the acquisition of the company by Reservoir and Black Diamond in 2007, AmeriLife has delivered strong financial growth, undertaken strategic acquisitions that have enabled it to expand its product offerings, and expanded to now have a truly nationwide footprint.

“As one of the nation’s largest independent distributors of life and health insurance products, AmeriLife already enjoys a reputation for helping its customers access the best products from the most trusted companies, securing the financial and healthcare protections they need for their families,” said J. Christopher Flowers, Managing Director and CEO at J.C. Flowers. “Today’s new healthcare regulations have made Americans more cognizant of the need for improved insurance coverage, which continues to create more opportunities for AmeriLife. We look forward to working with Tim, Gary and the rest of the talented team to continue taking advantage of the promising market trends that will enable us to grow the business both organically and through acquisitions.”

“We are pleased that our investment thesis for AmeriLife was validated through this sale process. It has been exciting partnering with AmeriLife during this time of growth and expansion of their business and we believe that J.C. Flowers is a great partner to continue the Company’s success,” said Matt Popoli, Senior Managing Director of Reservoir Capital Group.

The transaction is expected to be completed in the second or third quarter of 2015, subject to normal regulatory approvals.

Evercore has acted as financial advisor to AmeriLife in the transaction, and Akin Gump Strauss Hauer and Feld, LLP has acted as legal advisor to Reservoir Capital Group. Morgan Stanley & Co. has acted as financial advisor to J.C. Flowers in the transaction, and Debevoise & Plimpton LLP has acted as its legal advisor.

About AmeriLife

AmeriLife is the nation’s premier independent distributor of annuity, life and health insurance products focused on serving the senior market. Its national distribution network, which includes 100,000 affiliated agents across every state in the U.S., provides superior access for insurance carriers seeking to access the senior market. Founded in 1971, Clearwater, FL-based AmeriLife represents more than 75 national insurance carriers.

For more information, please visit www.amerilife.com/.

About J.C. Flowers & Co. LLC

J.C. Flowers is a leading private investment firm dedicated to investing globally in the financial services industry. Founded in 1998, the firm has invested more than $14 billion of capital in 39 portfolio companies in 14 countries across a range of industry subsectors including banking, insurance and reinsurance, securities firms, specialty finance, and services and asset management. With approximately $8 billion of assets under management, J.C. Flowers has offices in New York and London. For more information visit jcfco.com/.

About Reservoir Capital Group, L.L.C.

Reservoir Capital Group, L.L.C. is a privately held investment firm with a flexible, opportunistic investment approach. Reservoir invests directly in both public and private markets, as well as in partnership with investment teams through the creation of hedge funds and private equity funds in which the Reservoir funds are an owner. Reservoir currently has over $7 billion of capital under management.

About Black Diamond Capital Partners I, L.P.

Black Diamond Capital Partners I, L.P. is a private equity fund focused on investments in the insurance industry. The principals have extensive insurance industry experience and have worked closely with Reservoir on insurance transactions for over a decade.