Argo Group International Holdings, Ltd. [NYSE: ARGO] disclosed that it has inked an agreement to divest Brazilian operations, Argo Seguros Brasil S.A. The firm has decided to sell the Brazilian business to Spice Private Equity Ltd. which is an investment firm focused on global private equity investments, for a buying price of 160 million Brazilian Reais.
Argo Group introduced Argo Brazil in 2011 with a local team of insurance executives to shape a new insurance brand in the Brazilian insurance market. This divestiture is an important achievement in the development of Argo Brazil and back the Argo Group operating strategy to focus on U.S.-based specialty insurance risks.
Furthermore, Spice Private Equity Ltd. which is going to acquire the ownership of Argo Brazilian Business disclosed that all of its investments are handled by GP Advisors (Bermuda), Ltd which is a fully-owned division of GP Investments, Ltd. The execution of the deal is dependent on regulatory authorization and is anticipated to take place by the end of 2021.
Seneca Evercore served as a financial advisor, and TozziniFreire Advogados served as legal counsel to Argo Group in this deal.