Plotted by close date where disclosed, otherwise announcement. Select any marker to jump to the deal entry.
Three patterns run through The Progressive's acquisitions — what it looks for, how it pays, and how it folds in what it buys.
3 acquisitions — each with the deal value, financing structure, target revenue, and executive commentary where disclosed.
Progressive acquired a controlling interest in ARX Holding Corp., parent of American Strategic Insurance (ASI), one of the top 20 U.S. homeowners carriers, to add a home/property product and support its strategy of bundling home and auto in the Agency channel. Under the Stock Purchase Agreement signed December 15, 2014, Progressive bought roughly 63.2% of ARX's stock (plus ~1.0% more from employee/option holders during 2015) primarily from non-management shareholders for a total cost of about $890.1 million in cash, lifting its stake from a passive ~5% held since 2012 to a controlling position (~69.2% by December 31, 2015). The deal produced roughly $470 million of goodwill. ~$890.1 million (announced at ~$875M).
Progressive is committed to becoming the insurance destination brand for consumers. As such, we need the reliable availability of many more products than we intend to manufacture. ASI provides a significant array of the most important products beyond auto.
Completing the staged buyout begun in 2015, Progressive acquired the remaining outstanding stock of ARX to reach 100% ownership. Under the stockholders' agreement's put/call structure, minority holders first put 204,527 shares in 2018 for $295.9 million (raising Progressive above 80%, effective April 2018), and on April 1, 2020 Progressive purchased all remaining outstanding stock, including shares from exercised options, under a separately negotiated purchase agreement for a total cost of $243.0 million, taking ARX/ASI to a wholly owned subsidiary. $243.0 million (2020 remainder; plus $295.9M 2018 put).
Progressive, through an indirect subsidiary, acquired all outstanding Class A and Class B common shares of Protective Insurance Corporation for $23.30 per share in cash (about $338 million total) to expand its Commercial Lines portfolio with Protective's expertise in larger-fleet and affinity programs, workers'-compensation coverage for trucking and public-transportation fleets, and trucking-industry independent contractors. Announced February 16, 2021 and closed June 1, 2021; Protective was reported within Progressive's Commercial Lines segment and represented about 1% of companywide net premiums written from the acquisition date. ~$338 million ($23.30/share, all cash).
We look forward to joining as one team and profitably growing the business together... as we work towards making decisions on how to best integrate and operate our businesses to provide greater opportunities for growth.