Transaction Additional Refines HC2’s Strategic Concentration and Bolsters Liquidity Situation
NEW YORK, July 01, 2021 (Globe NEWSWIRE) — HC2 Holdings, Inc. (“HC2” or “the Company”) (NYSE: HCHC) declared today that it has concluded the formerly announced sale of its insurance coverage section, comprised of Continental Insurance policies Group Ltd. and its wholly-owned subsidiaries, Continental General Coverage Firm and Continental LTC Inc. (collectively, “Continental”), to Continental Typical Holdings LLC, an entity managed by Michael Gorzynski. The total transaction price of close to $90 million consists of a mixture of $65 million in money plus securities, which include certain assets of Continental.
Mr. Gorzynski, a director of the Corporation and useful operator of close to 6.6% of the Company’s excellent prevalent stock, is the taking care of member of MG Funds Administration, Ltd. and has also served as govt chairman of Continental considering the fact that October 2020.
“This divestiture marks a further vital milestone in the transformation of HC2. Heading ahead our focus will be on our a few core operating segments – Infrastructure, Daily life Sciences and Spectrum – all of which have ideal-in-course assets that are well positioned to prosper,” reported Avie Glazer, Chairman of HC2.
“The consummation of this deal will increase the Company’s financial overall flexibility, better supports our remaining assets and positions us to drive development,” said Wayne Barr, Jr., HC2’s President and CEO. “Over the final many months, we have refinanced our balance sheet and made a strategic acquisition of Banker Metal in our Infrastructure phase. We think we are perfectly positioned for progress and value development in the a long time in advance.”
“I think finishing this transaction assists HC2 meet up with its critical strategic targets whilst positioning Continental to strategically increase its footprint and go after new alternatives,” additional Mr. Gorzynski. “We glimpse ahead to continuing to construct a most effective-in-course business that prioritizes policyholders.”
The transaction was accepted by the Board of Directors of HC2, excluding Mr. Gorzynski and Kenneth Courtis, who recused themselves from the deliberations.
For additional information relating to the conditions and conditions of the settlement, remember to refer to the transaction agreement filed on Form 8-K with the Securities and Exchange Commission.
Duff & Phelps served as economical advisor to HC2 in link with the transaction and issued a fairness viewpoint to the Board of Administrators of HC2 in relationship with this transaction. Skadden, Arps, Slate, Meagher & Flom LLP served as authorized advisor to HC2. Olshan Frome Wolosky LLP, Duane Morris LLP, and Roberts & Holland LLP served as legal advisors to Michael Gorzynski.
HC2 Holdings, Inc. (NYSE: HCHC) has a course-foremost portfolio of subsidiaries in Infrastructure, Lifestyle Sciences and Spectrum. HC2 is headquartered in New York, NY, and as a result of its subsidiaries employs more than 4,300 individuals.
About MG Cash Management
Primarily based in New York Town, MG Funds is a non-public expense firm that specializes in complicated, worth-oriented investments.
Cautionary Assertion Concerning Forward-Searching Statements
Protected Harbor Assertion below the Private Securities Litigation Reform Act of 1995: This push release is made up of, and particular oral statements built by our reps from time to time may well incorporate, forward-seeking statements pertaining to the sale of Continental by the Corporation and our expectations about setting up shareholder benefit, as well as people that may well be identified by words and phrases such as “will,” “intend,” “expect,” “anticipate,” “should,” “could” and comparable expressions, all of which contain threats, assumptions and uncertainties, lots of of which are outside the house of the Company’s management, and are matter to improve. All ahead-hunting statements converse only as of the day produced, and until legally demanded, HC2 undertakes no obligation to update or revise publicly any ahead-seeking statements, regardless of whether as a result of new information, foreseeable future functions or normally. HC2’s actual outcomes could differ materially from those people expressed or implied in the forward-on the lookout statements because of to a wide range of important factors, the two favourable and adverse, that may well be revised or supplemented in subsequent statements and reviews filed with the Securities and Trade Commission (“SEC”), which include in our experiences on Kinds 10-K, 10-Q, and 8-K. These pitfalls and other significant factors talked over underneath the caption “Risk Factors” in our most latest Once-a-year Report on Kind 10-K submitted with the SEC, and our other stories submitted with the SEC could trigger precise results to differ materially from individuals indicated by the ahead-looking statements produced in this press launch.
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