White Mountains’s $388 Million Acquisition of NSM Insurance Group


Merger & Acquisition Services acted as financial advisor to White Mountains, while Cravath, Swaine & Moore LLP provided legal advice. Latham & Watkins LLP acted as legal advisor to selling equity holders and NSM, and McDonald Hopkins LLC acted as legal advisor to NSM management.

White Mountains Insurance Group, Ltd. (NYSE: WTM) (“White Mountains”) announced today that it has entered into an agreement to acquire a majority equity stake in NSM Insurance Group (“NSM”), a leading specialty insurance program administrator. The transaction values NSM at approximately $388 million. White Mountains intends to fund the acquisition through a combination of cash on hand and new debt issued by NSM.

NSM is a leading specialty insurance program administrator placing in excess of $500 million in premiums annually through its relationships with more than 6,000 brokerage firms and approximately 100 insurance carriers. NSM’s expertise covers a wide range of specialty insurance sectors such as collector cars, non-profit organizations, sports & wellness centers, specialty real estate and pet insurance. NSM’s deep industry knowledge and capabilities and longstanding relationships with insurance brokers and insurance carriers allow it to serve as a critical intermediary in the specialty insurance market.

The transaction is expected to close by the end of the second quarter of 2018. The closing is subject to regulatory approvals and other customary closing conditions. The closing is not subject to a financing condition.

White Mountains Insurance Group, Ltd. provides insurance services. The company, led by George Manning Rountree, Jess Brian Palmer and T Michael Miller, in 2017 recorded $373 Million Revenues.

The Cravath team is led by partner David J. Perkins (Picture) and includes associates Bryan G. Jones and Sung Woong (Andrew) Kang on M&A matters; partner Christopher K. Fargo and associate Richard Bohm on tax matters; partner Eric W. Hilfers and practice area attorney Romica Singh on executive compensation and benefits matters; partner David J. Kappos and associate Jessica M. Goodman on intellectual property matters; senior attorney Annmarie M. Terraciano on environmental matters; senior attorney Joyce Law and practice area attorney Brian M. Budnick on real estate matters; and senior attorney Jesse M. Weiss on antitrust matters. Hyun Soo Suh also worked on M&A matters and Faye C. Whiston worked on executive compensation and benefits matters.

Involved fees earner: David Perkins – Cravath Swaine & Moore; Bryan Jones – Cravath Swaine & Moore; Christopher K. Fargo – Cravath Swaine & Moore; Richard Bohm – Cravath Swaine & Moore; Eric Hilfers – Cravath Swaine & Moore; Romica Singh – Cravath Swaine & Moore; David Kappos – Cravath Swaine & Moore; Annmarie Terraciano – Cravath Swaine & Moore; Joyce Law – Cravath Swaine & Moore; Brian Budnick – Cravath Swaine & Moore; Jesse Weiss – Cravath Swaine & Moore;

Law Firms: Cravath Swaine & Moore;

Clients: White Mountains Insurance Group, Ltd.;