- Insurance distribution firm BRP Group (NASDAQ:BRP) has proposed an underwritten offering of 8M shares of its Class A common stock.
- Underwriters may be granted a 30-day option to purchase up to 1,200,000 additional Class A shares.
- Net proceeds from the offering will be used to purchase newly issued membership interests of Baldwin Risk Partners from its operating subsidiary Baldwin Risk Partners.
- Additionally, BRP Group has agreed to acquire substantially all of the assets of Jacobson, Goldfarb & Scott (JGS), including the equity interests of certain of its subsidiaries.
- The strategic acquisition is expected to close on or around October 1, 2021.
- Headquartered in Holmdel, New Jersey, JGS is a specialized insurance broker, focused on providing commercial insurance services to middle-market clients across the country.
- The deal expands BRP Group's specialty and middle-market practice expertise in key markets and industries, including Habitational Real Estate, Construction and Manufacturing & Distribution.
- With annual revenues of ~$43.3M, JGS represents BRP Group’s largest announced acquisition in 2021.
- Commenting on the deal, Trevor Baldwin, Chief Executive Officer of BRP Group, said, "We have made major strides in enhancing and expanding our specialty and middle-market segment capabilities and this Partnership with JGS will further accelerate that endeavor. We believe JGS’s existing commercial property programs and continued focus on offering complex, specialized products and solutions will enhance BRP Group’s ability to innovate for clients and offers meaningful scale in a highly complementary and synergistic business line in which we are excited to continue our investment and growth."
- BRP Group continues to have a strong partnership pipeline and currently expects to close partner acquisitions generating total acquired revenue of ~$175M-$200M in 2021, with all remaining 2021 partnerships closing in Q421, and ~$100M-$150M in 2022, with 2022 acquired revenue being split among fiscal quarters in a similar proportion as 2021 acquired revenue.
- BRP -1.70 AH