Hales & Company Inc. announced that its management team, led by Robert Seda and John Kraska, has acquired Hales & Company Inc. from a subsidiary of Arch Capital Group Ltd. Terms of the transaction were not disclosed.
Hales & Company, founded in 1973, is one of the oldest investment banking firms specializing in merger, acquisition and valuation advice for insurance agents and brokers throughout the United States. Arch acquired Hales in December 2000. Since that time, Arch has reportedly raised in excess of $1 billion in capital and is now a significant provider of insurance and reinsurance through its wholly-owned subsidiaries.
Jeffery Cappel, the outgoing chairman and CEO of Hales said, “This is a great next step for Hales. Under the leadership of Bob and John, I am extremely confident the firm will continue to provide top quality advice for its clients and dominate the agent and broker segment of the market.” Cappel, who is also the managing partner of Distribution Investment Capital, will remain as an advisor to the company through 2006.
Seda noted, “As an independent company, we will have much greater flexibility to recruit new associates and partners. We expect to expand all four of our offices over the next two years to meet the demand we are experiencing for our services.”
“As we build out our business, we will continue to deliver senior-level attention to our clients, something that has distinguished Hales from other advisors throughout its history,” added Kraska.
Hales’ clients represent a diverse mix of businesses, including property & casualty and life & benefits retail brokerage, wholesale brokerage, managing general agencies, claims administration, premium finance, technology and outsourcing companies as well as insurance and reinsurance underwriters.
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