Heritage Insurance Holdings Inc., a Florida property and casualty insurance holding company, announced recently from its Clearwater headquarters that its acquisition of Hawaii-based Zephyr Acquisition Co. and its wholly-owned subsidiary is now completed.
Publicized previously while negotiations were underway, the transaction’s closing represents tangible progress for the company as it allocates Heritage a direct footprint in the state of Hawaii.
The purchase price totaled close to $134 million, approximately $14 million more than expected due to higher revenue for Zephyr in the latter half of 2015 and the first quarter of 2016.
"The acquisition of Zephyr Insurance is a major step in our diversification process,” Bruce Lucas, Heritage chairman and CEO, said. “Zephyr will add over $60 million of voluntary premium to our book and add strategic diversification to our platform. Zephyr is an established company with an experienced management team and we are working toward a seamless integration."
Zephyr Acquisition Co. (ZAC), established in 2000, will remain based in Hawaii to serve its customers.
"Zephyr is proud to be known as a prominent and leading residential insurance provider in Hawaii and we look forward to continuing to serve our policyholders with superior customer service,” Zephyr's Richard Toyama, president and CEO, said. “We are excited to team up with Heritage to strengthen our overall product and capabilities."
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