Enstar’s $5.1B deal with Sixth Street proceeds as no rival offers emerge

Enstar Group Ltd.’s “go shop” period has concluded, with the company receiving no competing acquisition proposals to the $5.1 billion offer from Sixth Street, Enstar announced in a statement.

Over the 35-day period, Enstar, assisted by Goldman Sachs & Co, reached out to 34 potential third parties, but none submitted an alternative proposal.

The deal with Sixth Street, which includes participation from Liberty Strategic Capital, J.C. Flowers & Co. LLC, and other institutional investors, was initially agreed upon by Enstar in July. The “go shop” process was designed to explore alternative offers before finalizing the agreement.

Enstar indicated that upon the closing of the transaction, expected by mid-2025, it would continue its current operations and strategy as a privately held company.

“Over the past 30 years, Enstar has built a strong position in the legacy market founded on our exceptional scale and track record, pricing and claims expertise, and entrepreneurial culture,” said Enstars chief executive officer Dominic Silvester. “This transaction provides a full liquidity event for shareholders and is a testament to the strength of our team. We believe this is the best next step for our shareholders and we look forward to this exciting new chapter.”

“Enstar has a proven track record of delivering innovative legacy P&C solutions and capitalizing on attractive opportunities in the reinsurance market, while maintaining a conservative balance sheet and strong risk management culture,” said Sixth Street co-founder and partner Michael Muscolino (pictured above). “As an existing investor in Enstar, we have a deep respect for the business Enstar’s management team has built and look forward to continue supporting the company’s current strategy.”

The group’s underwriting entities maintain a Best’s Financial Strength Rating of A- (Excellent), reflecting its stable financial position. As of the afternoon of Sept. 4, shares of Enstar Group Ltd. were trading at $320.00, reflecting a 0.87% decline from the previous day’s close.

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