PRINT THIS PAGE Blackstone-led private equity consortium to acquire UICI16/09/2005. Source: AltAssets. 
 A consortium of private equity firms led by US buy-out giant The Blackstone Group and including Goldman Sachs Capital Partners and DLJ Merchant Banking Partners is to acquire North Richland Hills, Texas-headquartered insurance provider UICI in a cash merger at $37 per share. The transaction values the company at around $1.7bn.
The private equity consortium has committed to invest over $1bn of equity in the transaction. Management and current employees and agents are expected to invest over $125m.
UICI through its subsidiaries offers insurance to niche consumer and institutional markets. Through its Self-Employed Agency Division, UICI provides health insurance and related insurance products to the individual and self-employed markets. UICI's Student Insurance Division provides tailored health insurance programmes for students, and its Star HRG Division markets, administers and underwrites limited benefit insurance plans for entry level, high turnover, hourly employees. Through its Life Insurance Division, UICI offers life insurance products to selected markets, and through its ZON Re USA unit, the company underwrites, administers and issues accidental death, accidental death and dismemberment, accident medical and accident disability insurance policies, both on a primary and on a reinsurance basis.
Chinh Chu, senior managing director of Blackstone, said, 'UICI is a very unique and valuable asset. We are very impressed with UICI's market leadership, attractive industry fundamentals and strong management. We also believe that the company's sales agents are invaluable and provide UICI with a powerful competitive advantage. We look forward to working with the management team to continue to grow the company in this next chapter.'
Blackstone has offices in New York, Atlanta, Boston, Los Angeles, London, Hamburg, Paris and Mumbai. In addition to private equity investing, Blackstone's core businesses are private real estate investing, corporate debt investing, marketable alternative asset management, corporate advisory, and restructuring and reorganisation advisory.
GS Capital Partners Funds are part of Goldman Sachs' Principal Investment Area in the Merchant Banking Division.
DLJ Merchant Banking Partners is part of Credit Suisse First Boston's Alternative Capital Division.
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