M&A · Financials · Life Insurance
Brookfield Reinsurance Ltd. to acquire American Equity Investment Life Holding Co
Announced Jul 5, 2023 · Closed May 2, 2024
Deal value$4.30B
Premium35.0%To unaffected price
EV / Adj. EBITDA—
ConsiderationCash and stock$55.00 per share
Transaction
- Acquirer
- Brookfield Reinsurance Ltd. (BNT)
- Target
- American Equity Investment Life Holding Co (AEL)
- Buyer type
- Private equity
- Offer price per share
- $55.00
- Enterprise value
- —
- Status
- Closed May 2, 2024
Deal protections
- Break fee (target pays)
- $102M · 2.4%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Barclays
- To the target
- Ardea Partners, JPMorgan
Sector context · Financials
- Comparable deals
- 69 in the prior 24 months
- Premium
- 35.0% vs. 29.7% sector median
- EV / Adj. EBITDA
- Sector median 24.7x
- Break fee
- 2.4% vs. 3.4% sector median
Timeline
- AnnouncedJul 5, 2023
- Proxy filedOct 11, 2023
- Definitive proxyOct 11, 2023
- Shareholder voteNov 10, 2023
- ClosedMay 2, 2024
Valuation · fairness opinions
Premiums paidArdea Partners$48.13$55.93
Trading comparablesArdea Partners$43.96$60.93
Trading comparablesArdea Partners$42.80$56.33
Trading comparablesArdea Partners$40.67$66.75
Trading comparablesArdea Partners$46.36$63.36
Trading comparablesJPMorgan$43.79$60.93
Trading comparablesJPMorgan$40.67$66.75
Discounted cash flowJPMorgan$43.82$61.17
Offer $55.00
Implied value per American Equity Investment Life Holding Co share by analysis, from Ardea Partners and JPMorgan · DCF discount rate 9%–11%.