Traverse City News and Events

Hagerty To Become Publicly Traded Company Under Merger Agreement With Aldel Financial

By Beth Milligan | Aug. 18, 2021

Hagerty announced Wedneday it is entering into a merger agreement with acquisition company Aldel Financial, with Aldel to be renamed Hagerty, Inc. The company will become publicly traded, with its common stock expected to be listed on the New York Stock Exchange under the ticker HGTY.

The transaction is expected to deliver up to $820 million of gross proceeds to the combined company, including the contribution of up to $116 million of cash held in Aldel's trust account from its initial public offering in April 2021. The transaction values Hagerty at a pro forma enterprise value of $3.13 billion and provides cash proceeds to fuel Hagerty's strategy to accelerate its digital innovation initiatives.

The transaction, which has been unanimously approved by Aldel's board of directors and the independent members of Hagerty's board, is expected to close in the fourth quarter of 2021. It is subject to approval by Aldel's stockholders and Hagerty's owners and other customary closing conditions, including any applicable regulatory approvals. Over 40 percent of Aldel's stockholders have signed voting agreements in favor of the transaction.

"Today's announcement is an exciting step forward for Hagerty," said Hagerty CEO McKeel Hagerty. "We are thrilled to partner with Rob (Kauffman, Aldel CEO & chairman) and the Aldel team, who bring extensive expertise and strategic relationships in the automotive, insurance and financial sectors that will be a key strategic advantage for Hagerty. We believe this transaction will help to accelerate Hagerty's many growth opportunities and realize our bold mission to build the best automotive enthusiast brand in the world and save driving and car culture for future generations. As we look ahead, we are focused on investing in Hagerty's digital user experience interfaces to support our growing membership base, while we continue to expand our portfolio with highly engaging car events and exciting services like DriveShare by Hagerty and Hagerty Garage + Social clubhouses."   

Kauffman said his company "couldn't be more excited to work with McKeel and his team to help them grow and reach our collective goals. We ran an extensive process, and Hagerty represented what we were looking for in a partner for Aldel and our stockholders.  Hagerty offers a highly differentiated growth story with a large market opportunity. The company also has a proven financial profile with a predictable and consistent revenue model and strong corporate culture and leadership model. We believe our complimentary skills and contacts will further accelerate the Hagerty flywheel."

J.P. Morgan Securities LLC (J.P. Morgan) is serving as financial advisor to Hagerty and Global Leisure Partners LLC (GLP) and ThinkEquity LLC (ThinkEquity) are serving as financial advisor to Aldel in connection with the business combination. In announcing the merger and intention to become a publicy traded company, Hagerty noted there are more than 500 million individuals around the globe who express an interest in cars and approximately 69 million in the United States who declare themselves automotive enthusiasts. Hagerty has experienced greater than 25 percent compounded annual revenue growth rate over the last three years, strong customer retention at 90 percent, and average loss ratios significantly lower than the U.S. personal lines auto insurance industry.

"Looking forward, the company expects to achieve continued double-digit revenue and earnings growth underpinned by its long-term contracts, solid building blocks, and strategic partnerships," according to the announcement. 

 

Comment

Join The Ticker for April Recess at Commongrounds!

Read More >>

GT Regional Land Conservancy Acquires $5.1M Property in East Bay Township

Read More >>

173-Home Rental Subdivision, Timber Ridge Expansion Proposed

Read More >>

Leadership Changes, Housing Project, Commons Trail on Garfield Agenda

Read More >>

What's Next for Nonprofits at Planned Innovation Center Site?

Read More >>

Land Bank Plans New Uses for Crestwood, Kingsley, Boardman Properties

Read More >>

Meet Traverse City's Behind-The-Scenes Patrons Of Youth Music

Read More >>

NMC Audio Tech Program Plots Fundraiser Concert

Read More >>

Judge Dismisses Studio 8 Lawsuit Against City, Three Individuals

Read More >>

Avelo Airlines Coming to TVC with Direct Service to New Haven

Read More >>

How Two TC Filmmakers Captured The Story Of Michigan’s Arthouse Movie Theater Heritage

Read More >>

$30-$40 Million Technology/Logistics Park Proposed Next to Airport

Read More >>

Has Equilibrium Arrived For Traverse City Home Sales?

Read More >>

Local Wineries Score In Largest U.S. Wine Competition

Read More >>