Biglari Holdings buying another insurer
The San Antonio parent company of the Steak n Shake restaurant chain and Maxim magazine has agreed to acquire another insurance company for almost $300 million.
Biglari Holdings Inc. announced Thursday that a subsidiary has agreed to acquire the parent of California-based Pacific Specialty Insurance Co. and its affiliated agency, McGraw Insurance Inc. The deal is expected to close next quarter.
The $299.5 million purchase price consists of $24 million in cash, to be paid at closing, and $274.5 million in deferred payments.
Pacific Specialty, which operates in all 50 states, is known for its motorcycle, personal watercraft and homeowners insurance, Biglari Holdings said in a statement. The sellers are John M. McGraw and Michael J. McGraw; the latter will continue as Pacific Specialty’s CEO.
“A family managed business such as the one by the McGraws fits well within Biglari Holdings’ collection of businesses,” said Biglari Holdings Chairman and CEO Sardar Biglari said in statement. “By becoming a constituent company of Biglari Holdings, Pacific Specialty and its affiliated agency will benefit from the parent company’s strength and stability.”
In 2014, Biglari Holdings acquired acquired commercial trucking insurance underwriter First Guard Insurance Co. of Venice, Florida.
Biglari Holdings shares fell to $2.73 to close at $383.83 Thursday.